Feds Target $3M in Bribery Cash Linked to Bangladesh Deals

Feds have launched a major investigation targeting $3 million in suspected bribe proceeds linked to public work projects in Bangladesh. The funds are alleged to be part of a wide-ranging conspiracy involving foreign public officials and their families.

Acting Assistant Attorney General Matthew Friedrich announced the forfeiture action against accounts in Singapore, which federal prosecutors claim are laden with the illicit cash. The money is said to have been funneled through various channels, including U.S. financial institutions, before landing in the foreign accounts.

The case centers on alleged bribes paid to Arafat ‘Koko’ Rahman, son of Bangladesh’s former prime minister. Much of the funds are believed to be tied to a project awarded to Siemens AG and China Harbor Engineering Company to build a new mooring containment terminal in Chittagong.

Siemens AG pleaded guilty on December 15, 2008, to violating the Foreign Corrupt Practices Act (FCPA), admitting to corrupt payments totaling at least $5.3 million made to various Bangladeshi officials for favorable treatment during bidding processes.

This investigation is part of a broader strategy by the feds to combat international corruption, which includes cooperation between multiple federal agencies such as the Departments of Justice, Treasury, State, and Homeland Security.

Deputy Chief Linda Samuel and Trial Attorney Frederick Reynolds are leading the prosecution, with assistance from the FBI’s Washington Field Office and Bangladeshi law enforcement agencies.

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