Title: High-Profile Cases of Corporate Fraud and Money Laundering: Three Convictions & Sentencings
Ecuador’s Former Comptroller General Convicted in International Bribery and Money Laundering Scheme
- Carlos Ramon Polit Faggioni, former Comptroller General of Ecuador, was convicted on April 24, 2023, for his role in an international bribery and money laundering scheme involving the Brazil-based construction conglomerate Odebrecht S.A.
Convictions and Sentencing
- Found guilty on one count of conspiracy to commit money laundering, three counts of concealment money laundering, and two counts of engaging in transactions in criminally derived property.
- Potential sentence of up to 20 years’ imprisonment for each count of money laundering and conspiracy to commit money laundering, as well as a ten-year prison term for each count of engaging in transactions with criminally derived property.
Allegations against Polit
- Bribed about $10 million from 2010 to 2015 in exchange for leniency in fines and removed penalties for Odebrecht’s projects in Ecuador.
- hid and laundered illicit money by purchasing real estate in Florida and creating multiple companies under friends and associates’ names.
US Department of Justice Press Statement
Indian National Sentenced for Dark Web Drug Distribution and Money Laundering
- Banmeet Singh, an Indian national, was sentenced to five years’ imprisonment on April 19, 2023, and ordered to forfeit $150 million for his role in a scheme to distribute drugs on dark web marketplaces like Silk Road, Alpha Bay, and Hansa.
Convictions and Sentencing
- Pled guilty for conspiracy to possess with intent to distribute controlled substances and conspiracy to commit money laundering.
- Oversaw at least eight drug distribution cells across different states, where individuals packaged drug shipments for dispersal throughout the US, Canada, and other countries.
- Believed to have distributed several hundred kilograms of drugs and laundered the proceeds into crypto accounts worth $150 million.
US Department of Justice Press Statement
Former Software Company CEO Given Imprisonment Term and Fine for Securities and Wire Fraud
- Manish Lachwani, the former CEO of HeadSpin Inc., was sentenced to 18 months’ imprisonment and required to pay a $1 million fine on April 19, 2023, following his guilty plea in January 2023.
Convictions and Sentencing
- Misrepresented HeadSpin’s revenue and other financial metrics during a Series C fundraising round.
- Manipulated HeadSpin’s revenue by including former clients and prospective clients who had not signed up for the company’s services.
Additional Civil Action
- Faces a civil action by the Securities and Exchange Commission (SEC), settling with the company in January 2022, but no financial penalties were imposed due to the company’s significant remedial efforts and repayments to affected investors.
US Department of Justice Press Release SEC Complaint against Lachwani