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In re Omega Advisors, Inc.

 
:
Omega Advisors, Inc.
:
DOJ Criminal
:
June 19, 2007
:
In re Omega Advisors, Inc.
:
In re Omega Advisors, Inc. (2007)
:
Omega Advisors brought suit against Viktor Kozeny in a London court claiming that he defrauded it and other investors of $180 million in a 1998 investment in the former Soviet republic of Azerbaijan by charging them $25 a piece for options in the proposed privatization of the state oil company that cost him 40 cents. Kozeny argued in his defense that Omega could not sue under U.K. law because a former Omega employee, Clayton Lewis, had admitted to knowing of the bribing Azeri officials as part of Kozeny’s transaction, making Omega partially responsible. The parties settled the fraud suit in January 2009 resulting in the lifting of a series of court orders freezing Kozeny’s wealth.
:
Energy (Non-Utility)-Oil & Gas-Exploration/Production
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Azerbaijan
:
1997; 1998; 1999
:
A senior Azeri government official; senior official of State Oil Company of Azerbaijan Republic ("SOCAR"); two senior officials of Azerbaijan's State Property Committee.
:
Viktor Kozeny, the alleged mastermind of a bribery scheme to profit from the privatization of state assets in Azerbaijan in the 1990s, recruited Omega Advisors as a co-investor in the purchase of options for shares in SOCAR. Clayton Lewis was the Omega employee who acted as Kozeny's point of contact. Omega entered a co investment agreement with Kozeny's companies Oily Rock and Minaret in 1998 -investing $100 million.

Lewis, who was prosecuted separately, pleaded guilty in 2005 to allegations that he had learned, prior to Omega's investment, that Kozeny had entered into arrangements with Azeri government officials that gave those officials a financial interest in the privatization in exchange for certain benefits for the investment consortium led by Kozeny.

In June 2007, Omega entered a non-prosecution agreement that provides that Omega will not be prosecuted for any FCPA violations. Omega will civilly forfeit $500,000 and will continue to cooperate with the government.
:
Anti-bribery (Domestic Concern), Conspiracy - Anti-Bribery
:
Cease and Desist, Non-prosecution Agreement
:
$500,000 in forfeiture pursuant to the non-prosecution agreement.
:
500,000
:
0
:
Domestic Concern
:
Shareholder
:
U.S.
:
Contract Procurement/Retention
:
Not stated.
:
Cash, Entertainment, Gifts, Meals, Travel, Wire/check
:
Direct, Family Member
:
313,000,000
:
Azerbaijan
:
Azerbaijan, Netherlands, Switzerland, United States
:
No