Mozambique Finance Minister Convicted of $2 Billion Fraud

Mozambique Finance Minister Convicted of $2 Billion Fraud, Bribery and Money Laundering Scheme

Guilty Verdict Handed Down in Brooklyn Federal Court

A federal jury in Brooklyn has convicted Manuel Chang, 68, the former Finance Minister of Mozambique, for his role in a massive $2 billion fraud, bribery and money laundering scheme that victimized investors in the United States and elsewhere.

Key Charges and Convictions

Conspiracy to Commit Wire Fraud: Chang was found guilty on one count of conspiracy to commit wire fraud.
Conspiracy to Commit Money Laundering: He was also convicted on one count of conspiracy to commit money laundering.
Potential Prison Sentence: Chang faces up to 20 years in prison for each count.

The Scheme Unfolded

According to court documents and evidence presented at trial, Chang received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects. However, instead of using the loan proceeds for the projects, Chang and his co-conspirators diverted over $200 million to pay bribes and kickbacks to himself and other government officials.

Impact on Investors and Mozambique

The scheme involved a United Kingdom subsidiary of Credit Suisse AG and another foreign investment bank arranging for over $2 billion to be extended to companies owned and controlled by the Mozambican government. The proceeds were intended to fund three maritime projects, but ultimately failed and left investors and Mozambique stuck with the bill.

Justice Department and FBI Response

“This conviction is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant’s greed and self-interest,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Chang now stands convicted of pocketing millions in bribes to approve projects that ultimately failed, laundering the money, and leaving investors and Mozambique stuck with the bill.”

The FBI and its partners will not tolerate corrupt officials lining their pockets with kickbacks at the cost of the citizens they are supposed to look out for, said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch.

Collaboration and Assistance

The Justice Department’s Office of International Affairs provided substantial assistance in the case. The FBI New York Field Office investigated the case, with trial attorneys from the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section prosecuting the case.

Credit Suisse AG and CSSEL pleaded guilty to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project, paying approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.

The Justice Department’s Office of International Affairs provided substantial assistance in the case. The FBI New York Field Office investigated the case. Trial attorneys from the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section prosecuted the case, with the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development, as well as authorities in the United Kingdom, Switzerland, Spain, and Portugal.