Feds charge former oil trader in international bribery scheme involving Mexican officials
A former oil trader for a U.S. affiliate of one of the world’s largest energy trading firms was charged in connection with an international bribery scheme, federal authorities announced Monday.
Javier Aguilar of Texas has been charged under the U.S. Foreign Corrupt Practices Act for paying bribes to officials of Petróleos Mexicanos, or PEMEX, a state-owned oil company of Mexico, and its subsidiary, PPI, to get business for Vitol Inc., federal prosecutors said.
Aguilar is appearing in federal court three years after Vitol settled a related investigation for more than $135 million, officials announced Monday.
Between 2017 and 2020, Aguilar paid bribes to Mexican officials for information to help Vitol win the company’s business, the U.S. Attorney's Office said. In one instance, Aguilar allegedly paid about $600,000 in bribes for a contract to supply ethane to PEMEX through PPI.
To conceal the bribery scheme, Aguilar, along with other co-conspirators sent bribe payments to domestic and offshore bank accounts through shell companies and intermediaries, the indictment says. The companies also used nonbusiness email accounts, encrypted messaging platforms and code names to communicate about the scheme, prosecutors allege.
Aguilar was scheduled to make his first appearance in Houston Monday.
Aguilar is also facing charges in New York Eastern District Court for bribes he allegedly paid in Ecuador to get business for Vitol. A federal grand jury returned the indictment in Sept. 2020, and the case is ongoing.
Vitol Inc. settled related bribery case in 2020
In 2020, Vitol agreed to pay more than $135 million to resolve an investigation by the U.S. Department of Justice and parallel investigation in Brazil, officials previously announced.
The company was accused of paying millions in bribes to Brazil, Ecuador, and Mexico between 2005 and 2020. In exchange, the company received confidential information on pricing, competitors and more. Aguilar was described as part of the bribe scheme in court documents.
Vitol also agreed to pay a $16 million penalty to the Commodity Futures Trading Commission in a "related matter", and “disgorge” more than $12.7 million, officials said.
“Vitol is committed to upholding the law and does not tolerate corruption or illegal business practices. As recognised by the authorities, Vitol has cooperated extensively throughout this process. We understand the seriousness of this matter and are pleased it has been resolved. We will continue to enhance our procedures and controls in line with best practice,” Vitol CEO Russell Hardy previously said in a statement regarding the 2020 settlement.
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