A former senior oil and gas trader, Glenn Oztemel, was sentenced in Bridgeport, Connecticut, to 15 months in prison for his involvement in a scheme to bribe Brazilian government officials and launder money. The scheme lasted nearly eight years and aimed to secure business for Arcadia Fuels Ltd. (Arcadia) and Freepoint Commodities LLC (Freepoint), companies where Oztemel worked. He was also fined $300,000.
Court documents and evidence presented at trial showed that Oztemel, 66, from Westport, Connecticut, paid more than $1 million in bribes to officials at Petróleo Brasileiro S.A. (Petrobras), Brazil's state-owned oil company. In return for these payments, Oztemel received inside information about competitor bids and confidential pricing from other U.S. companies. This gave Arcadia and Freepoint an advantage in obtaining fuel oil contracts from Petrobras.
Evidence indicated that Oztemel and others arranged for Arcadia and Freepoint to make corrupt payments disguised as consulting fees or commissions to a third-party intermediary, Eduardo Innecco. They knew Innecco would pass part of the funds to Brazilian officials, including Houston-based Petrobras trader Rodrigo Berkowitz. To hide the scheme, those involved used coded language such as “breakfast” and “freight deviation,” communicated through personal email accounts, encrypted messaging apps, disposable phones, and used false names like “Spencer Kazisnaf” and “Nikita Maksimov.”
Oztemel was convicted in September 2024 of 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 December 2023, Freepoint admitted it had bribed officials in Brazil in violation of the FCPA’s anti-bribery provisions. The company entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Connecticut. As part of this resolution, 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 FBI Los Angeles Field Office’s International Corruption Squad led the investigation with support from the Justice Department’s Office of International Affairs as well as authorities from Brazil, Latvia, Switzerland, and Uruguay.
Trial Attorneys Allison McGuire and Clayton P. Solomon from the Criminal Division’s Fraud Section along with Assistant U.S. Attorney Michael McGarry prosecuted the case.
The Criminal Division’s Fraud Section handles investigations related to FCPA (Foreign Corrupt Practices Act) matters as well as Foreign Extortion Prevention Act cases.
