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U.S. v. Jeffrey Tesler and Wojciech J. Chodan

 
:
Halliburton and KBR, Inc. - Tesler, Jeffrey
:
DOJ Criminal
:
February 17, 2009
:
U.S. v. Jeffrey Tesler and Wojciech J. Chodan
:
U.S. v. Tesler and Chodan, No. 09-098 (S.D. Tex. 2009)
:
This is one of the few known cases in which the U.S. has succeeded in extraditing a foreign national, in this case a U.K. and Israeli dual-citizen, who acted as an agent for a U.S. company. Tesler stopped fighting his extradition from the U.K. after the London Court of Appeals ruled in early 2011 that he should face charges in the U.S.

The forfeiture of proceeds traceable to the charges against Tesler -- $148,964,568 -- is the largest forfeiture against an individual in FCPA history.
:
Energy (Non-Utility)-Oil & Gas-Exploration/Production
:
Nigeria
:
1994; 1995; 1996; 1997; 1998; 1999; 2000; 2001; 2002; 2003; 2004
:
Officials of Nigeria's executive branch; Officials of the government-owned company responsible for developing and regulating Nigeria's oil and gas industry (Nigerian National Petroleum Company); Officials of government-controlled company formed to develop the Bonny Island Project (Nigeria LNG Limited)
:
The M.W. Kellogg Company and its successor company, Kellogg, Brown & Root Inc., were part of a four-company joint venture seeking to obtain contracts to build liquefied natural gas facilities on Bonny Island, Nigeria. The so-called TSJK joint venture ultimately obtained four contracts worth $6 billion.

According to the indictment, the joint venture hired Jeffrey Tesler, a U.K. solicitor with a shell company (Tri-Star) located in Gibraltar and bank accounts in Switzerland and Monaco, to bribe Nigerian government officials to obtain contracts from the Nigerian National Petroleum Corporation. The consulting contract between a company owned by the joint venture partners and Tri-Star allegedly indicated that Tri-Star would be paid for marketing and advisory services when in fact the primary purpose was to facilitate bribes.

In his plea agreement, Tesler admited that between 1995 and 2004, the TSKJ joint venture allegedly paid him and his shell company approximately $132 million, via correspondent accounts in New York, for use in bribing Nigerian government officials. Tesler acknowledged that he met with Nigerian senior officials and negotiated and paid bribe payments totaling $143.5 million. He also admitted in the plea agreement to communicting regarding arrangements for a top level Nigerian official to take a golfing trip in the US.

In February 2009, the DOJ filed an eleven-count indictment under seal against Tesler and Chodan, which was unsealed in March 2009. The indictment charged Tesler with one count of conspiring to violate the anti-bribery provisions of the FCPA and nine counts of violating the anti-bribery provisions of the FCPA. The indictment also contained forfeiture allegations seeking $132 million from Tesler and Chodan.

On March 11, 2011, Tesler agreed to plead guilty to conspiracy and one count of violating the anti-bribery provisions of the FCPA. As part of his plea agreement, he agreed to forfeit $148,964,568.67. On February 23, 2012, Tesler was sentenced to 21 months in prison followed by two years supervised release and a $25,000 fine.
:
Anti-bribery (Domestic Concern), Conspiracy - Anti-Bribery
:
Fine, Forfeiture, Imprisonment, Plea
:
Forfeiture of $148,964,568.67; sentence of 21 months and two years supervised release; fine of $25,000. Prosecutors had sought a 78-month sentence for Tesler, but he received credit for his cooperation with the government.
:
148,989,568
:
21
:
Agent of Domestic Concern
:
Foreign
:
United Kingdom
:
Contract Procurement/Retention
:
6,000,000,000
:
Entertainment, Travel, Wire/check
:
Sales Agent/Consultant
:
143,500,000
:
Japan, Monaco, Nigeria, Switzerland
:
Japan, Monaco, Netherlands, Switzerland, United States
:
"Mails or means or instrumentality of interstate commerce": The indictment cites an email that Tesler, as agent of a domestic concern, caused to be transmitted to or through Houston as the basis for an anti-bribery charge. In addition, eight of the charges are based solely on correspondent account jurisdiction allegations.

"Agent": The indictment charges Tesler as an agent of an issuer, an agent of a domestic concern, and an agent of a person. The indictment states that Tesler was an agent of the joint venture as well as an agent of each joint venture partner. At the time of the conduct, one partner, KBR, was a "domestic concern"; another partner, "EPC Contractor B," was an "issuer" headquartered in Paris, France; "EPC Contractor C" was a wholly owned subsidiary of a Italian company that was an "issuer"; "EPC Contractor D" was a company headquartered in Yokohama, Japan and considered a "person" under the FCPA. Tesler was not charged as an "other person" himself. In his plea agreement, he admitted to acting as an agent of a domestic concern.
:
No
:
No
:
France, Nigeria, Switzerland, United Kingdom