Former Petrochemical CEO Sentenced for Foreign Bribery Scheme

A high-ranking executive at a major Brazilian petrochemical company has been sentenced to 20 months in prison for a brazen foreign bribery scheme that netted millions of dollars in illicit profits.

Jose Carlos Grubisich, 64, the former Chief Executive Officer (CEO) of Braskem S.A. (Braskem), a publicly-traded Brazilian petrochemical company, pleaded guilty on April 15 to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to violate the books and records provision of the FCPA and to fail to accurately certify Braskem’s financial reports.

According to court documents, between approximately 2002 and 2014, Grubisich, who served as the CEO and a member of the board of directors of Braskem — as well as in various capacities for Braskem’s parent company, Odebrecht S.A. (Odebrecht) — engaged in a scheme to bribe Brazilian government officials.

As part of the scheme, Grubisich and his co-conspirators diverted approximately $250 million from Braskem into a secret slush fund, which Grubisich and others generated through fraudulent contracts and offshore shell companies secretly controlled by Braskem.

Grubisich was sentenced to 20 months in prison and ordered to forfeit $2.2 million and pay a $1 million fine. The case was investigated by the FBI’s International Corruption squad in New York, with substantial assistance provided by the Criminal Division’s Office of International Affairs.

The Securities and Exchange Commission (SEC) also played a key role in the case, with Braskem and Odebrecht each pleading guilty in the Eastern District of New York to conspiracy to violate the anti-bribery provisions of the FCPA in December 2016.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York, and Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office made the announcement.

The case highlights the importance of enforcing anti-bribery laws and protecting the integrity of the financial markets.

The defendant:

Jose Carlos Grubisich, 64, of Brazil

Criminal charges:

Conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and conspiracy to violate the books and records provision of the FCPA and to fail to accurately certify Braskem’s financial reports

City and state:

New York

Exact date:

April 15, 2023

Sentence or outcome:

20 months in prison, $2.2 million forfeiture, and a $1 million fine

Dollar amounts:

$250 million diverted from Braskem into a secret slush fund and $2.2 million forfeiture

MORE FEDERAL CRIME NEWS

Public Corruption

Westar Energy, Environmental Deception, Kansas 2023

Feb 4, 2009

Public Corruption

City Official Embroiled in Soft Drink Promotion, El Centro CA, 1936

May 7, 1936

Public Corruption

Governor Len Small, Failure to Act, Illinois 1922

Mar 31, 1922

Public Corruption

El Paso Post Office Wintered for Months, El Paso TX, 1911

Jan 5, 1911