Geneva Oil Trader Pays $661-M To U.S. And Swiss Government Over Ecuador Bribery

Geneva-based commodities trading firm Gunvor announced on Friday that it has reached a $661 million settlement with US and Swiss prosecutors following convictions for bribery of foreign officials in connection with the petroleum industry in Ecuador, as reported by the Associated Press (AP).

Swiss prosecutors revealed that the case involved payouts that led the state petroleum company Petroecuador to award two oil-related contracts to Gunvor. I Photo: Gunvor Group

The Swiss attorney general’s office stated that the company failed to implement "reasonable and necessary organizational measures" to prevent bribery by its employees in the South American country over four years starting in February 2013.

A statement from the US Federal Court in Brooklyn indicated that Judge Vitaliano sentenced Gunvor to pay a criminal penalty of over $374 million and forfeit more than $287 million in "ill-gotten gains."

"Gunvor has accepted responsibility for the actions of certain of its former agents and employees - all of whom Gunvor stopped working with years ago and before it learned of the US investigation - and pleaded guilty in federal court in New York," the company said.

Swiss prosecutors revealed that the case involved payouts that led the state petroleum company Petroecuador to award two oil-related contracts to Gunvor.

US authorities stated that the Geneva commodities trader earned more than $384 million in profits "from the business it corruptly obtained" related to the Ecuadorian oil company.

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