A Connecticut resident who was a former senior oil and gas trader was sentenced to 15 months in federal prison for his role in a money-laundering scheme, according to federal authorities.
Authorities said the nearly eight-year-long scheme was to bribe Brazilian government officials and to launder money to secure business for Arcadia Fuels Ltd. and Freepoint Commodities LLC.
Glenn Oztemel, 66, of Westport, worked at the two companies, according to federal authorities. He was also fined $300,000.
Citing court documents and evidence presented at trial, authorities said Oztemel paid more than $1 million in bribes to officials at Petróleo Brasileiro S.A., the Brazilian state-owned oil and gas company. This was 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,” authorities said.
Authorities said evidence presented during the trial showed that Oztemel and his co-conspirators “caused Arcadia and Freepoint to make corrupt payments — disguised as purported consulting fees and commissions — to a third-party intermediary and agent, Eduardo Innecco, knowing that Innecco would pay 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,” authorities said.
Oztemel was convicted in September 2024 of conspiracy to violate the Foreign Corrupt Practices Act, conspiracy to commit money laundering, three counts of violating the FCPA and two counts of money laundering, according to federal authorities.
Freepoint admitted in December 2023 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,” according to federal authorities. Freepoint has agreed to pay more than $98 million in criminal penalties and forfeiture.
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. The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters.