Former Haitian Official Convicted of FCPA Bribery Scheme

March 15, 2012 by Peter Milligan|Penalties and Courts

The Justice Department announced on March 13, 2012 that Jean Rene Duperval, a former director of international relations for Telecommunications D’Haiti S.A.M. (Haiti Teleco), a Haitian state-owned telecommunications company, has been convicted for his role in a scheme to launder bribes paid to him by two Miami-based telecommunications companies in violation of Foreign Corrupt Practices Act (FCPA).

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Sentencing is scheduled for May 21, 2012. Duperval's charges carry a combined maximum sentence of 40 years in prison and $1 million in fines, or twice the value of the property involved in the transaction. The indictment also seeks forfeiture, which will be determined by the court at a later date.

Two Miami Companies Used Shell Companies to Funnel Bribes to Duperval

Duperval was the director of international relations for Haiti Teleco, the sole provider of land line telephone service in Haiti. According to the evidence presented at trial, two Miami-based telecommunications companies had a series of contracts with Haiti Teleco that allowed the companies’ customers to place telephone calls to Haiti. Duperval was convicted for participating in a scheme to commit money laundering from 2003 to 2006, during which time the telecommunications companies collectively paid $500,000 to two shell companies to funnel the bribes to Duperval. The funds were then disbursed from the shell companies for the benefit of Duperval and his family. To conceal the nature of these funds, Duperval falsely characterized these payments as “commissions” and “payroll.”

Purpose of Bribes was to Obtain Preferred Telecom Rates, etc.

The purpose of these bribes, according to the evidence presented at trial, was to obtain various business advantages from Duperval, including the issuance of preferred telecommunications rates, a continued telecommunications connection with Haiti and the continuation of a particularly favorable contract with Haiti Teleco.

Duperval Is 8th Defendant in Corruption Scheme to Be Convicted

Duperval was the eighth defendant involved in the corruption scheme to be convicted, which includes the following individuals:

On Jan. 12, 2010, Antonio Perez, a former controller at one of the Miami-based telecommunications companies, was sentenced to 24 months in prison, which he is currently serving.
On May 15, 2009, Juan Diaz, the president of J.D. Locator Services, admitted to receiving more than $1 million in bribe money from telecommunications companies. On July 30, 2010, he was sentenced to 57 months in prison, which he is currently serving. (See ITT's Online Archives 10080110 for summary)
On May 5, 2010, Jean Fourcand, the president and director of Fourcand Enterprises Inc., was sentenced to six months in prison for receiving and transmitting bribe monies in the scheme.
On June 2, 2010, Robert Antoine, a former director of international affairs for Haiti Teleco, was sentenced to 48 months in prison for receiving more than $1 million in bribes from Miami-based telecommunications companies, which he is currently serving.
On August 4, 2011, Joel Esquenazi and Carlos Rodriguez, who were the former president and vice-president, respectively, of one of the telecommunications companies, were convicted for conspiracy to violate and violating the FCPA and for other charges. On October 25, 2011, Esquenazi was sentenced to 15 years in prison, the longest sentence ever imposed in a case involving the FCPA. On the same day, Rodriguez was sentenced to 84 months in prison for his role in the bribery scheme. Both are currently serving their sentences. (See ITT's Online Archives 11102732 for summary).