As the global commodity trading and mining giant admits its years-long involvement in foreign bribery cases as well as bunker fuel price manipulation at the ports of Houston and Los Angeles, US Attorney Damien Williams, acting for the Southern District of New York, declared yesterday, reports Bunkerspot.
Plea agreement
In a statement issued yesterday, the US Department of Justice said Glencore has pleaded guilty and agreed to pay over $1.1 billion ‘to resolve’ the US government’s investigations into violations of the Foreign Corrupt Practices Act (FCPA) and a commodity price manipulation scheme.
As part of its plea agreement in relation to the manipulation of fuel oil prices at Houston and Los Angeles, Glencore Ltd has agreed to pay a criminal fine of over $341 million, forfeiture of over $144 million, and retain an independent compliance monitor for over three years.
Bribe
Glenore Ltd has admitted that between January 2011 and August 2019, its employees – including those who worked at Chemoil (which was majority owned by Glencore Ltd’s parent company and then fully acquired in 2014) – conspired to manipulate two S&P Global Platts benchmark price assessments: IFO 380 cSt at the Port of Los Angeles and RMG 380 at the Port of Houston.
On pricing days, Glencore Ltd employees submitted bids and offers to Platts during the daily trading window for the Platts prices assessments with the intention to artificially push the price assessment up or down, depending on whether Glencore Ltd had fuel oil to sell on to or buy from other parties.
Manipulating the price of fuel oil
Between September 2021 and September 2016, Glencore Ltd’s employees also sought to manipulate the price of fuel oil bought from and sold to a specific counterparty, known as Company A, in relation to Los Angeles 380 cSt bunker fuel.
A former Glencore Ltd senior fuel oil trader, Emilio Jose Heredia Collado, already pleaded guilty in March 2021 on a count of conspiracy to engage in price speculation in relation to the Los Angeles 380 price assessment, and his sentencing is scheduled for 17 June.
Criminal fine
Glencore has also agreed to pay a criminal fine of over $428 million and to criminal forfeiture and disgorgement of more than $272 million in relation to its and its subsidiaries attempts to make and conceal corrupt payment and bribes through intermediaries for the benefit of foreign officials across countries such as Nigeria, Venezuela, Brazil and Ivory Coast.
Other charges
In connection with this activity, Glencore was charged with violation of the US FCPA. The company also had charges brought against it by the U.K.’s Serious Fraud Office (SFO) and it reached separate parallel resolutions with the Brazilian Ministério Público Federal (MPF) and the CFTC.
Sentencing has been scheduled in the market manipulation case for 24 June, and a control date for sentencing in the FCPA case has been set for 3 October.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: Bunker Spot
