A former executive of Corsa Coal Corporation has been convicted by a federal jury for participating in a scheme to bribe Egyptian government officials to secure coal supply contracts worth nearly $140 million.
According to the Department of Justice, Charles Hunter Hobson, 50, from Knoxville, Tennessee, served as vice president at Corsa and was responsible for international sales. Evidence presented during the trial indicated that between 2016 and 2020, Hobson agreed to pay bribes to officials at Al Nasr Company for Coke and Chemicals (Al Nasr), an Egyptian state-owned chemical manufacturer. The payments were made through an intermediary in Egypt under the guise of sales commissions. This intermediary received over $4.8 million and paid Hobson more than $200,000 in kickbacks.
“Charles Hunter Hobson won business for his company by paying bribes — and he even took a cut for himself,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Businessmen and companies that pay bribes to foreign government officials to win contracts undermine the rule of law and distort competition, which hurts American business interests worldwide. The Criminal Division will continue its commitment to vindicating our national interests by combatting foreign corruption in violation of U.S. law.”
U.S. Attorney Troy Rivetti for the Western District of Pennsylvania stated: “Bribing officials of foreign governments to obtain business, and then laundering that money, is illegal, corrupts the global marketplace, and disadvantages law-abiding U.S. companies. Along with our law enforcement colleagues at the FBI and other agencies, we will continue to investigate and bring to justice defendants such as Charles Hobson who seek to enrich themselves while engaging in flagrant, fraudulent conduct.”
Assistant Director in Charge Darren Cox of the FBI Washington Field Office added: "Hobson used his leadership position at Corsa to bribe Egyptian government officials and secure millions of dollars in sales contracts for the company. Through this bribery scheme, he violated American and Egyptian laws and robbed law-abiding coal companies of the chance to compete for profits. His conviction is the latest result of the FBI's work to investigate individuals who resort to corrupt practices to increase international business."
The jury found Hobson guilty on multiple charges including conspiracy to violate the Foreign Corrupt Practices Act (FCPA), two counts of violating FCPA provisions directly, conspiracy related to money laundering, two counts of money laundering itself, as well as conspiracy involving wire fraud. Each FCPA-related charge carries a maximum penalty of five years in prison; each count related to money laundering or wire fraud conspiracy carries up to 20 years.
Frederick Cushmore Jr., another executive involved with Corsa Coal Corporation’s international dealings, previously pleaded guilty regarding his role in this case; sentencing is pending.
In March 2023, authorities concluded their investigation into Corsa Coal Corporation after agreeing not pursue further prosecution against it following disgorgement measures under relevant corporate enforcement policies.
The investigation was conducted by agents from both the FBI’s International Corruption Unit based in Washington D.C., along with support from local field offices.
Prosecution efforts were led by Trial Attorneys Natalie Kanerva and Ligia Markman from the Criminal Division’s Fraud Section together with Assistant U.S. Attorney Nicole Stockey representing Pennsylvania’s Western District.
Further details about enforcement efforts related specifically toward FCPA cases are available via www.justice.gov/criminal/fraud/fcpa.
