On September 26, 2024, a federal jury convicted Glenn Oztemel, a former oil and gas trader, for his role in an alleged bribery and money laundering scheme involving officials of Petróleo Brasileiro SA (“Petrobras”), Brazil’s state-owned oil and gas company, and his brother, Gary Oztemel. Glenn Oztemel was convicted of conspiracy to violate the Foreign Corrupt Practices Act, conspiracy to commit money laundering, three counts of violating the FCPA, and two counts of money laundering. A sentencing hearing for Glenn has not yet been scheduled by the court.
According to court documents and evidence presented at trial, between 2010 and 2018, Glenn Oztemel paid and laundered more than $1 million in bribes to Petrobras officials in order to obtain contracts for Arcadia Fuels Ltd. and Freepoint Commodities LLC, two commodities-trading companies in Connecticut. Glenn allegedly worked with co-conspirators, including his brother Gary and a third-party intermediary Eduardo Innecco, to cause Arcadia and Freepoint to make payments characterized as “consulting fees and commissions” to Innecco, with the understanding that Innecco would pay a portion of the funds to Brazilian officials. The bribes were paid in exchange for confidential information that provided Arcadia and Freepoint an unfair advantage in obtaining and retaining fuel oil contracts with Petrobras, along with other improper assistance, according to the DOJ. The co-conspirators allegedly attempted to conceal the scheme by using coded language and fictitious names, and through the use of personal email accounts, encrypted messaging applications, and disposable phones.
Glenn Oztemel and Innecco were originally indicted by the DOJ in February 2023. Innecco was arrested France in May 2023, and his extradition to the United States is pending. Gary Oztemel was indicted in August 2023 and pleaded guilty to money laundering on June 24, 2024. Gary is currently scheduled to be sentenced on October 28, 2024.
In a related matter, Freepoint admitted to bribing Petrobras officials in December 2023, when the company entered into a deferred prosecution agreement with federal prosecutors and a settlement with the Commodity Futures Trading Commission. As part of these settlements, the company agreed to pay more than $98 million in criminal and civil penalties, forfeiture, and disgorgement.
DOJ Press Release | Superseding Indictment | Plea Agreement – Gary Otzemel | Freepoint Commodities DPA