Financial Crime World

Equatorial Guinea’s Teodoro Nguema Obiang Mangue: A $110 Million Financial Fraud Saga Unveiled in US Courts

Teodoro Nguema Obiang Mangue, the Vice President of Equatorial Guinea, reached a settlement with the US Department of Justice in October 2014, forfeiting assets worth millions as part of a civil asset forfeiture lawsuit. The proceeds were planned to be used to create a charity benefiting the people of Equatorial Guinea.

Background

  • In October 2011, the US Department of Justice filed two civil asset forfeiture suits.
  • One suit in California targeted a Malibu mansion, a Ferrari, and Michael Jackson memorabilia.
  • The other suit in Washington, D.C., focused on a Gulfstream G-V private jet.

Preceding Events

  • In February 2010, the U.S. Senate Permanent Subcommittee on Investigations held hearings.
  • Obiang was identified as having moved over $110 million into the US since 2004.
  • The senate report named Obiang as a key focus in the 2004 hearing regarding Riggs Bank.
  • The California case went through a summary judgment in August 2013.
  • After the settlement, the civil forfeiture action in Washington, D.C., was dropped.

Criminal Cases

  • In November 2010, French Supreme Court allowed a criminal complaint against Obiang.
  • In July 2012, an international arrest warrant was issued.
  • In March 2014, an indictment was made.

UNCAC Offenses

  • Article 17: Embezzlement, misappropriation or other diversion of property by a public official
  • Article 20: Illicit enrichment
  • Article 23: Laundering of proceeds of crime

Public Officials and Sectors

  • Teodoro Nguema Obiang Mangue
  • Primarily agriculture, forestry, and fisheries

Authorities Involved

  • U.S. Senate Permanent Subcommittee on Investigations
  • Foreign Corruption Investigations Group of the Immigration and Customs Enforcement
  • HSI Asset identification and Removal Group
  • Department of Justice, Criminal Division, Asset Forfeiture and Money Laundering Section
  • US District Court for the Central District of California
  • US District Court for the District of Columbia

Asset Recovery and Return

  • Legal basis for asset recovery in the United States included non-conviction based confiscation (NCB) and out-of-court settlement agreements.
  • The returned funds were earmarked to establish a charity for the benefit of the people of Equatorial Guinea.

Conclusion

The case of Teodoro Nguema Obiang Mangue’s financial fraud provides a compelling example of the cross-border issues that arise when dealing with corruption, money laundering, and illicit enrichment. Through the collective work of international and domestic agencies, the proceeds of this corruption case may hopefully be put to good use for the betterment of the people of Equatorial Guinea.