A former oil and gas trader from Connecticut has been sentenced to 15 months in prison for his involvement in a bribery and money laundering scheme that lasted nearly eight years. Glenn Oztemel, 66, was also fined $300,000 after being convicted of paying more than $1 million in bribes to officials at Petróleo Brasileiro S.A. (Petrobras), Brazil’s state-owned oil company.
Court documents revealed that Oztemel sought inside information from Petrobras, such as competitor bids and confidential pricing details from other U.S. companies. This information helped Arcadia Fuels Ltd. and Freepoint Commodities LLC secure fuel oil contracts with Petrobras. The bribes were disguised as consulting fees and commissions paid to an intermediary, Eduardo Innecco, who then distributed part of the funds to Brazilian officials, including a Petrobras trader based in Houston.
To hide the scheme, Oztemel and his associates used coded language like “breakfast” and “freight deviation,” communicated through personal email accounts, encrypted messaging apps, disposable phones, and used fictitious names such as “Spencer Kazisnaf” and “Nikita Maksimov.”
Oztemel was convicted in September 2024 on charges including conspiracy to violate the Foreign Corrupt Practices Act (FCPA), conspiracy to commit money laundering, three counts of violating the FCPA, and two counts of money laundering.
In a related development, Freepoint admitted in December 2023 to bribing Brazilian officials in violation of the FCPA's anti-bribery provisions. The company entered into a deferred prosecution agreement with the Justice Department’s Criminal Division Fraud Section and the U.S. Attorney’s Office for the District of Connecticut. As part of this agreement, Freepoint agreed to pay over $98 million in criminal penalties and forfeiture.
“Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; U.S. Attorney David X. Sullivan for the District of Connecticut; and Assistant Director in Charge Akil Davis of the FBI’s Los Angeles Field Office made the announcement.”
The case was investigated by the FBI Los Angeles Field Office’s International Corruption Squad with support from authorities in Brazil, Latvia, Switzerland, Uruguay, and assistance from the Justice Department’s Office of International Affairs.
Prosecution was handled by Trial Attorneys Allison McGuire and Clayton P. Solomon from the Criminal Division’s Fraud Section along with Assistant U.S. Attorney Michael McGarry for Connecticut.
The Justice Department continues its enforcement efforts related to FCPA violations through its Criminal Division Fraud Section. More information is available at www.justice.gov/criminal/fraud/fcpa.
