BRIDGEPORT — A former senior oil and gas trader from Westport was sentenced Dec. 9 to 15 months in prison for his role in a nearly eight-year-long scheme to bribe Brazilian government officials and to launder money to secure business for Arcadia Fuels Ltd. and Freepoint Commodities LLC. He was also fined $300,000.
According to court documents and evidence presented at trial, Glenn Oztemel, 66, paid more than $1 million in bribes to officials at Petróleo Brasileiro S.A., the Brazilian state-owned oil and gas company, in exchange for inside Petrobras information — including competitor bids and confidential pricing information from other U.S. companies — that gave Arcadia and Freepoint a competitive advantage in winning lucrative fuel oil contracts from Petrobras.
The evidence at trial showed that Oztemel and his co-conspirators caused Arcadia and Freepoint – companies where Oztemel worked – to make payments disguised as purported consulting fees and commissions to a third-party intermediary and agent. According to court documents, the agent Eduardo Innecco paid a portion of those funds to Brazilian officials, including a Houston-based Petrobras trader, Rodrigo Berkowitz.
To conceal the scheme, Oztemel, Innecco and their co-conspirators used coded language like “breakfast” and “freight deviation” to refer to the bribes and communicated using personal email accounts, encrypted messaging applications, disposable phones and fictitious names like “Spencer Kazisnaf” and “Nikita Maksimov.”
In September 2024, Oztemel was convicted 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 a related matter, in December 2023, Freepoint admitted to bribing officials in Brazil in violation of the anti-bribery provisions of the FCPA. Freepoint 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 a part of the resolution, Freepoint agreed to pay more than $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 investigated the case. The Justice Department’s Office of International Affairs and authorities in Brazil, Latvia, Switzerland, and Uruguay provided assistance with the investigation.
Glad to see that justice was served. Hopefully, it will act as a deterrent for other oil and gas traders.