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U.S. v. Yaw Osei Amoako

 
:
ITXC Corp. - Amoako, Yaw Osei
:
DOJ Criminal
:
June 28, 2005
:
U.S. v. Yaw Osei Amoako
:
U.S. v. Amoako, No. 05-1122 (D.N.J. 2007)
:
Telecommunications-Other/Multi
:
Nigeria, Rwanda, Senegal
:
2001; 2002; 2003; 2004
:
Amoako paid $166,000 to an unspecified Nigerian official who worked as a Deputy General Manager of NITEL, a Nigerian telecommunications firm wholly owned by the Nigerian government. He also paid an unspecified Senegalese official $74,000, and unspecified Rwandan officials $26,000.
:
Yaw Osei Amoako ("Amoako") conspired with co-workers and executives to violate the F.C.P.A. by setting up agent contracts with government officials that paid the official a portion of the revenue from contracts in Nigeria, Rwanda, and Senegal. Amoako worked for ITXC Corporation ("ITXC"), a provider of Voice Over Internet Protocol telecommunication services, as its Regional Sales Manager for Africa. In 2002, he succeeded in negotiating contracts between ITXC and NITEL, a telecommunications company wholly owned by the Nigerian government, to purchase and provide internet telephone services.

Amoako contracted with Standard Digital International to assist him in developing contracts with NITEL. Standard Digital was a shell corporation for a Nigerian official. NITEL's General Director of International Relations signed the contract as Standard Digital's CEO. The Contract required ITXC to pay Standard Digital, i.e., the Nigerian official, a retainer fee of $10,000 and a commission of 12% of ITXC's profits from any contracts with NITEL or the Nigerian government.

Amoako paid the $10,000 retainer in two installments of $5,000 each by wiring the money from ITXC's New Jersey bank account to Standard Digital's account in Nigeria.

Amoako also agreed to pay the Nigerian official $150,000 to settle a rate dispute with NITEL on favorable terms. The money was wired to the official from ITXC's New Jersey bank account to the Standard Digital's bank account in Nigeria.

Finally, in 2004, Amoako wired a final payment of $6,541 to the official in Nigeria. In all, Amoako arranged for ITXC to transfer $166,541 to the Nigerian official. Amoako also negotiated a contract with Rwandatel, a telecommunications company wholly owned by the Rwandan government. While negotiating the agreement Amoako offered to make the Rwandatel official participating in negotiations an ITXC agent. Amoako had ITXC wire more than $26,155 directly to the Rwandatel official.
In 2002, Amoako also negotiated a contract with Sonatel, a Senegalese telecommunications company partially owned by the Senegalese government and France Telecom. While negotiating the agreement Amoako offered to make a Sonatel employee an ITXC agent. The employee signed an agreement that required ITXC to pay him a commission on all sales in Senegal. ITXC transferred approximately $74,000 to benefit the Sonatel official.
:
Conspiracy - Anti-Bribery
:
Travel Act
:
Fine, Plea
:
The court ordered Amoako to pay a fine of $7,500 and specially assessed him $100. The court waived interest on the $7,500 fine because it found that Amoako could not afford to pay it. The plea agreement required Amoako to make restitution, but did not specify a recipient or an amount.
:
7,600
:
18
:
The court assessed a base offense level of 10, increased the base level by 2 levels because the offense involved paying multiple bribes and an additional 12 levels because the amount of the bribes was over $200,000, and subtracted 3 levels because Amoako accepted responsibility for his actions. The court thus assigned Amoako a total offense level of 21, which indicated a sentence of 36-47 months. The DOJ wrote a separate sentencing memorandum to the judge asking him to depart downward from the sentencing guidelines because of Amoako's cooperation, which the judge ultimately did in sentencing Amoako to 18 months.
:
Employee of Issuer
:
Regional Sales
:
U.S.
:
Contract Procurement/Retention
:
11,509,733
:
Wire/check
:
Direct, Sales Agent/Consultant
:
269,468
:
Nigeria, United States
:
Nigeria, United States
:
Yes
:
No