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U.S. v. Frederic Cilins

 
:
Cilins, Frederic
:
DOJ Criminal
:
April 19, 2013
:
U.S. v. Frederic Cilins
:
U.S. v. Frederic Cilins, No. 13-cr-315 (KMW) (S.D.N.Y. 2013)
:
Cilins was not indicted for violations of the FCPA, but for charges relating to the obstruction of an ongoing investigation into an unnamed mining company's potential violations of the FCPA.

Press reports describe Cilins as an “agent” of the Beny Steinmetz Group Resources (“BSGR”); however, BSGR has disclaimed any connection between the company and Cilins.

:
Minerals-Mining
:
Guinea
:
2013
:
Guinean Official with authority to influence the award of mining concessions.
:
Beginning in January 2013, a federal grand jury in the Southern District of New York has conducted an ongoing investigation into possible violations of the FCPA and other anti-money laundering statutes in relation to the award of a valuable mining concession in Guinea’s Simandou region to an unnamed company. In March 2013, investigators began working with the former wife (“cooperating witness”) of a now-deceased Guinean government official suspected of receiving bribes in exchange for the award of the relevant mining concession.

As alleged in the complaint, the cooperating witness revealed that while her husband was in office, both were visited by several individuals from the unnamed company, including the defendant Frederic Cilins. During these meetings, these individuals offered bribes to the cooperating witness and various other government officials to secure valuable mining rights in Guinea. The cooperating witness referenced a series of contracts from June 2007, February 2008, and August 2010 between the unnamed company and its affiliates which memorialized the terms of the transaction. These agreements not only required the cooperating witness to incorporate a company and take all necessary steps to secure the mining concession but also stipulated that $2 million was to be transferred to the cooperating witness for distribution to the relevant government officials. These contracts also show that the unnamed company agreed to provide the cooperating witness with 5% of the shares of stock in particular mining areas in Guinea.

In early March 2013, investigators learned that Cilins contacted the cooperating witness in an effort to obtain the original copies of these contracts. Through a series of recorded phone calls and face-to-face meetings, Cilins allegedly agreed to pay the cooperating witness approximately $1 million in exchange for the relevant documents which he intended to destroy. Cilins also sought to induce the cooperating witness to sign an affidavit containing numerous false statements regarding the investigation. Throughout these conversations, the complaint alleges that Cilins made multiple statements which suggested his actions were at the direction of a superior within the unnamed company.

Following the final meeting between Cilins and the cooperating witness on April 14, 2013, Cilins was arrested by federal officials in Jacksonville, Florida. Cilins was indicted by a grand jury sitting in the Southern District of New York on April 25, 2013 for five counts of obstruction of justice related charges including tampering with a witness and destroying records in a federal investigation.

Cilins pleaded not guilty to all charges. His trial is set for March 31, 2014.
:
Destruction of Records, False Statements, Obstruction of Justice
:
Not stated.
:
0
:
Other Person
:
Agent/Intermediary
:
Foreign
:
France
:
Contract Procurement/Retention
:
Not stated.
:
Cash
:
Direct, Family Member
:
Not stated.
:
Guinea
:
No
:
No
:
Guinea