iFormer Comptroller of Ecuador Convicted in International Bribery and Money Laundering Scheme
On April 24, a Miami jury convicted Carlos Ramon Polit Faggioni, the former Comptroller General of Ecuador, for his role in an international bribery and money laundering scheme involving the Brazil-based construction conglomerate Odebrecht S.A. Polit was convicted of one count of conspiracy to commit money laundering, three counts of concealment money laundering, and two counts of engaging in transactions in criminally derived property.
According to the government and court documents, Polit accepted bribes in exchange for not imposing fines as well as removing existing fines issued to Odebrecht for its projects in Ecuador. In total, Polit is alleged to have solicited and accepted $10 million in bribes from 2010 to 2015. The government also accused Polit of using another member of the conspiracy to hide and launder the money by purchasing real estate in Florida and using Florida companies registered in the names of friends and associates, often without the associates’ knowledge.
Polit faces a maximum penalty of 20 years’ imprisonment for each count of money laundering and conspiracy to commit money laundering, and a maximum penalty of 10 years in prison on each count of engaging in transactions in criminally derived property.
The US Department of Justice’s (DOJ) press release can be found here.
Indian National Receives Five-Year Sentence for Dark Web Drug Distribution Scheme and Agrees to Forfeit $150 Million
On April 19, Indian national Banmeet Singh was sentenced to five years’ imprisonment and ordered to forfeit about $150 million for allegedly selling controlled substances on dark web marketplaces such as Silk Road, Alpha Bay, and Hansa. Singh was arrested in April 2019 in London and extradited to the United States in March 2023. He ultimately pleaded guilty to conspiracy to possess with intent to distribute controlled substances and conspiracy to commit money laundering.
According to the government, from 2012 through July 2017, Singh controlled at least eight distribution cells in several states where individuals would receive drug shipments and repackage them for distribution to all 50 states, as well as to Canada, England, Ireland, Jamaica, Scotland, and the US Virgin Islands. In total, Singh is alleged to have distributed hundreds of kilograms of drugs and laundered the drug proceeds into cryptocurrency accounts worth $150 million.
The DOJ’s press release can be found here.
Former CEO of Software Company Sentenced to 18 Months’ Imprisonment
On April 19, Manish Lachwani, the former CEO of software company HeadSpin Inc., was sentenced to 18 months’ imprisonment and ordered to pay a $1 million fine after pleading guilty to wire fraud and securities fraud for his alleged role in a scheme to inflate HeadSpin’s revenue figures.
The government claims that Lachwani misrepresented HeadSpin’s revenue and other financial metrics in presentations to potential investors during a Series C fundraising round that resulted in the company raising $60 million in three months. Lachwani is also alleged to have inflated HeadSpin’s revenue by including former customers as well as those who expressed interest in the company but did not actually sign up for its subscription-based services.
In addition to the criminal matter against him, Lachwani also faces a separate civil action by the US Securities and Exchange Commission (SEC). In January 2022, the SEC settled with HeadSpin and did not seek financial penalties given the company’s significant remedial efforts, which included an internal investigation into Lachwani and repayments to investors.
The DOJ’s press release can be found here, and the SEC complaint against Lachwani can be found here.
