US Files New FCPA Charges Against Former Vitol Trader for Mexico, Ecuador Bribery Schemes
The U.S. filed new charges under the Foreign Corrupt Practices Act against Javier Aguilar, a former oil and commodities trader at Vitol, accusing the Mexico and Houston resident of conspiracy to violate the FCPA's anti-bribery provisions for schemes in Ecuador and Mexico. The case against Aguilar was originally brought to the U.S. District Court for the Eastern District of New York in 2020 solely for the Ecuadorian bribery scheme (see 2009230016). The new indictment now lays out five counts against Aguilar, four for FCPA violations and one for money laundering (U.S. v. Javier Aguilar, E.D.N.Y. #20-00390).
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From 2015 to 2020, Aguilar allegedly paid bribes to Ecuadorian and Mexican official to get and retain business for Vitol related to Ecuador's state-owned oil company, Petroecuador; Mexico's state-owned oil company, Petroleos Mexicanos (PEMEX); and PEMEX Procurement International, a PEMEX subsidiary. DOJ said Aguilar wired bribes to various bank accounts via shell companies and intermediaries, also creating fake consulting agreements and invoices to hide the payments.
Under the Ecuador bribery scheme, Aguilar with his co-conspirators bribed Ecuadorian officials to secure "improper advantages for Vitol," including a 2016 contract between Petroecuador and a state-owned entity -- an unnamed oil and gas company located in the Middle East. This contract had Petroecuador supply the state-owned entity with fuel for 30 months in exchange for $300 million. Vitol benefited from the contract since a Vitol affiliate entered into a separate agreement with the Middle East company to market, sell and ship the oil products.
Under the bribery scheme, Aguilar and his co-conspirators allegedly paid bribes to get and obtain business with PEMEX and PPI. In 2017, Aguilar met with different procurement managers at PPI in Texas. At the meeting, the defendant agreed to pay bribes for inside information to aid Vitol in winning business from the procurement subsidiary, including a contract to supply PPI with ethane. Bribes for this contract totaled around $600,000 if Vitol won the contract, which it did in 2018.