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U.S. v. David Rothschild

 
:
Rothschild, David
:
DOJ Criminal
:
November 2, 2012
:
U.S. v. David Rothschild
:
U.S. v. David Rothschild, 3:12-cr-00223-WWE (D. Conn. 2012)
:
David Rothschild pleaded guilty to a charge of conspiring to violate the FCPA on November 2, 2012, but the plea was unsealed only on April 16, 2013.

Rothschild’s employer is not identified by name in the pleadings; however, press reports indicate that his employer is Alstom SA, a French power and transportation company. This is corroborated by prior public statements by Alstom.
:
Utilities-Electric
:
Indonesia
:
2002; 2003; 2004; 2005; 2006; 2007; 2008; 2009
:
An Indonesian Member of Parliament; High-ranking members of Perusahaan Listrik Negara (PLN), which is the state-owned and state-controlled electricity company in Indonesia.
:
Alstom SA (identified in the pleadings as a “French power and transportation company”) is headquartered in France, and provides power generation and transportation-related services around the world. Its shares were listed on the NYSE until August 2004. Alstom has direct and indirect subsidiaries around the world, including a subsidiary in Windsor, Connecticut, and also in Switzerland and Indonesia.

David Rothschild was formerly a vice-president of regional sales at Alstom Connecticut. His responsibilities included obtaining contracts with new customers and retaining contracts with existing customers in various countries, including the Tarahan Project in Indonesia.

Along with others, Rothschild allegedly paid bribes to officials in Indonesia, including a Member of Parliament and at least two high-ranking members of Perusahaan Listrik Negara (PLN), which is the state-owned and state-controlled electricity company in Indonesia. The alleged bribes were paid in exchange for these officials’ assistance in securing a contract for Alstom to provide power-related services for Indonesian citizens (called the Tarahan Project.) One of the PLN officials involved was a high-ranking member of the evaluation committee for the Tarahan Project, and the other had broad decision-making authority and influence over the award of contracts by PLN, including on the Tarahan Project. The Member of Parliament was also a "key legislator" and "Vice Chairman of the Parliament Commission dedicated for Power and Energy" who had "easy direct access personally to PLN Board."

The charges allege that Rothschild and others retained two consultants (Consultant A and Consultant B) purportedly to provide legitimate consulting services on behalf of Alstom and its subsidiaries in connection with the Tarahan Project. In reality, the primary purpose for hiring the consultants was allegedly to use them to pay bribes to Indonesian officials.

Alstom and its subsidiaries first retained Consultant A in 2002. Consultant A was to receive a commission (three percent of the Tarahan Project contract value) from which he was expected to pay bribes to Indonesian officials. Consultant A allegedly received hundreds of thousands of dollars into his Maryland bank account to be used to bribe the Indonesian Member of Parliament and then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official.

However, sometime in 2003, it was allegedly decided that Consultant A was not effectively bribing key Indonesian officials. Consultant A’s consulting agreement was amended to restrict his responsibilities to paying bribes only to the Indonesian Member of Parliament, and accordingly reduced his commission rate to one percent.

In April 2004, Alstom, its subsidiaries, and its Consortium Partner entered into a finalized consulting agreement with Consultant B in connection with the Tarahan Project.

In May 2005, Alstom, its subsidiaries and its Consortium Partner secured the Tarahan Project. Between 2005 and 2009, Alstom Connecticut made four separate payments to Consultant A's bank account in Maryland.
:
Conspiracy - Anti-Bribery
:
Plea
:
Not stated.
:
0
:
Agent of Domestic Concern, Domestic Concern, Employee of Domestic Concern
:
Regional Sales
:
U.S.
:
United States
:
Contract Procurement/Retention
:
118,000,000
:
Not stated.
:
Indonesia
:
United States
:
No
:
No
:
Indonesia