Micronesian Government Official Charged with Money Laundering in Connection to Bribes for FSM Contracts
High-Ranking Micronesian Government Official Pleads Guilty to Money Laundering Charges
- A Micronesian government official, Master Halbert, 44, admitted his guilt to money laundering charges for bribes received in exchange for securing engineering and project management contracts from the Federated States of Micronesia (FSM) in violation of the Foreign Corrupt Practices Act (FCPA).
- Halbert pleaded guilty before U.S. District Judge Susan O. Mollway in the District of Hawaii.
Bribes for FSM Contracts
- Halbert, a Micronesian national, served as an official within the FSM Department of Transportation, Communications, and Infrastructure, managing the country’s aviation programs, including overseeing its airports.
- Between 2006 and 2016, a Hawaii-based engineering and consulting firm, owned by Frank James Lyon, provided bribes totaling nearly $8 million to FSM officials, including Halbert.
- The bribe payments were transported from the United States to the FSM as part of the agreement.
- Lyon, 53, of Honolulu, Hawaii, pleaded guilty to conspiring to violate the anti-bribery provisions of the FCPA and commit federal program fraud on January 22 in the District of Hawaii.
- He is scheduled to be sentenced on May 13.
Investigation Assistance and Responsibilities
- Trial Attorney Katherine Raut from the Criminal Division’s Fraud Section is overseeing the case.
- The Criminal Division’s Office of International Affairs and the U.S. Department of Transportation Office of Inspector General offered significant assistance during the investigation.
Department of Justice’s FCPA Enforcement Efforts
- The Fraud Section is responsible for investigating and prosecuting all FCPA-related matters.
- More information regarding the Department of Justice’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa