How Invetech LLC a Private Detective Agency Could Have Prevented the Glenn Oztemel Bribery and Money Laundering Scheme

How Invetech LLC a Private Detective Agency Could Have Prevented the Glenn Oztemel Bribery and Money Laundering Scheme

The conviction of Glenn Oztemel, a former oil and gas trader, for bribing Brazilian government officials and laundering money to secure business for Connecticut-based commodities trading companies raises significant concerns about corporate ethics and compliance. With evidence showing that Oztemel paid over $1 million in bribes to officials of Petrobras, Brazil’s state-owned oil and gas company, it’s clear that robust measures are necessary to combat such illegal activities. This case illustrates how Invetech LLC a private detective agencies can play a pivotal role in preventing corruption and protecting companies from unethical practices. Contact an Invetech LLC investigator for a free consultation.

Charges against Oztemel and Innecco were unsealed on Feb. 17, 2023. In a superseding indictment returned on Aug. 29, 2023, both were charged alongside Oztemel’s brother, Gary Oztemel. Gary Oztemel pleaded guilty to money laundering on June 24. In May 2023, Innecco was arrested in France and his extradition to the United States is pending. An indictment is merely an allegation, and Innecco is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Overview of the Case

Oztemel was found guilty of conspiring to violate the Foreign Corrupt Practices Act (FCPA) and engaging in money laundering over nearly eight years. His actions involved a complex scheme to disguise bribes as consulting fees, using coded language, encrypted messaging, and personal email accounts to evade detection. The scheme not only undermined fair market competition but also damaged the integrity of U.S. businesses operating abroad.

The Role of Private Detectives in Corporate Compliance

Private detective agencies offer specialized services that can help companies identify, prevent, and address potential compliance issues, including corruption and bribery. Here are several ways a private detective could have intervened:

**Conducting Due Diligence**

Before entering into contracts with foreign entities, companies should perform thorough due diligence. A private detective agency can investigate potential partners, including reviewing their business practices and assessing their reputations. This diligence could have revealed any red flags associated with Petrobras officials or intermediaries like Eduardo Innecco, allowing companies to make informed decisions.

**Monitoring Employee Conduct**

Implementing an employee monitoring program can help identify suspicious behaviors that may indicate corrupt practices. Private detectives can establish protocols to track communications, expenditures, and business dealings. In Oztemel’s case, unusual patterns in email correspondence or financial transactions could have raised alarms early on, prompting an internal investigation.

**Implementing Whistleblower Programs**

A private detective agency can assist in developing whistleblower programs that encourage employees to report unethical behavior without fear of retaliation. Such programs can create a culture of transparency and accountability within organizations. Had Freepoint and Arcadia established effective whistleblower mechanisms, employees may have reported Oztemel's activities, potentially preventing the scheme from escalating.

**Training and Compliance Programs**

Private detectives can help design training programs focused on legal compliance, particularly regarding anti-bribery laws like the FCPA. Training employees to recognize and report potential bribery and corruption can significantly reduce the risk of illegal activities taking place within the company.

**Investigating Suspicious Activities**

If a company suspects corruption, a private detective agency can conduct discreet investigations to gather evidence and assess the situation. This proactive approach can uncover illicit activities before they lead to legal ramifications. In Oztemel’s case, early intervention could have mitigated the scale of the bribery scheme.

Conclusion

The conviction of Glenn Oztemel serves as a stark reminder of the importance of ethical practices in business operations. By engaging private detective agencies for comprehensive compliance solutions, companies can better protect themselves from the risks of corruption and bribery. Early detection and prevention are key to maintaining integrity and trust in the marketplace, ensuring that businesses operate within the bounds of the law.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

Utilizing a professional investigator to conduct a background check should be part of your SOP, not just when problems arise. Good leadership has a proactive approach to managing their investment utilizing a due diligence investigation to their fullest advantage. Invetech LLC helps clients mitigate financial loss by providing actionable insight solutions with due diligence investigation.

Pell City Man Sentenced to 71 Months in Prison for Financial Fraud Scheme Due Diligence Background Check Investigation

Pell City Man Sentenced for Defrauding Investors of Over $4.7 Million

U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples Announce Conviction

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John Michael Golden Faces 71 Months in Prison for Wire Fraud

Pell City resident John Michael Golden, 48, has been sentenced to 71 months in prison followed by three years of supervised release for defrauding more than 40 investors out of over $4.7 million. The sentence was handed down by Chief U.S. District Court Judge R. David Proctor after Golden pleaded guilty to one count of wire fraud in April 2024.

Scheme to Defraud Investors

Golden, the founder and owner of Wolf-Tek, LLC; MountainTop Timber, LLC; and DroneTek, Inc., orchestrated a fraudulent scheme from January 2018 to October 2023. He convinced investors to put money into his companies by making false claims, such as impending multi-million dollar sales to major companies like Amazon, lucrative timber leases, and hundreds of pre-orders for drones requiring capital. He also issued Promissory Notes with false promises of high returns within short periods.

Golden's deceit extended to placating victims with false text messages about their money's availability and future repayment dates. Despite signing a plea agreement, Golden continued to defraud new victims and had his bond revoked for contacting victims and making false promises.

Investigation and Prosecution

The Federal Bureau of Investigation, with assistance from the Alabama Securities Commission, conducted the investigation. Assistant United States Attorney Ryan Rummage prosecuted the case.

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Invetech LLC: Safeguarding Investments Against Fraud

In light of cases like this, organizations can turn to Invetech LLC for advanced background screening and monitoring solutions. Invetech LLC's comprehensive services help prevent fraud by thoroughly vetting potential investors and business partners, ensuring the integrity and security of financial transactions. By leveraging cutting-edge technology and expert analysis, Invetech LLC protects organizations from fraudulent schemes and financial crimes.

Utilizing a professional investigator to conduct a background check should be part of your SOP, not just when problems arise. Good leadership has a proactive approach to managing their investment utilizing a due diligence investigation to their fullest advantage. Invetech LLC helps clients mitigate financial loss by providing actionable insight solutions with due diligence investigation.

Kanawha County West Virginia Woman Sentenced to Prison for COVID-19 Relief Fraud Scheme Due Diligence Background Investigation

South Charleston Woman Sentenced for PPP Loan Fraud

CHARLESTON, W.Va. – Lydia Spencer, 33, of South Charleston, was sentenced today to four months in prison, followed by three years of supervised release, and ordered to pay $36,814.13 in restitution for conspiracy to commit bank fraud. Spencer admitted to participating in a scheme to defraud the Paycheck Protection Program (PPP) of $31,250 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Fraudulent Scheme Details

According to court documents and statements made in court, Spencer was the sole proprietor of Les Prints, a custom clothing business based in Charleston. In April 2021, she conspired with at least three other individuals to obtain fraudulent PPP loans for her business. The PPP was designed to offer forgivable loans to small businesses for job retention and certain other expenses, as part of the emergency financial assistance provided by the CARES Act.

One co-conspirator recruited Spencer, who then provided her personal and bank account information. Another co-conspirator used Spencer’s information to submit fraudulent PPP loan applications on behalf of Les Prints to two different lenders. Each lender approved a $15,625 PPP loan for Les Prints, disbursed on April 30, 2021, and June 17, 2021, respectively. Both transfers were deposited into Spencer’s personal bank account.

Spencer admitted that the PPP loan applications contained materially false information, including a falsified IRS Form 1040, Schedule C Profit or Loss from Business, which falsely stated that Les Prints had received $75,000 in gross income in 2020. This false information qualified Les Prints for loan amounts it otherwise would not have received.

Between May 3, 2021, and June 21, 2021, Spencer used a mobile payment service app to transfer a total of $4,000 from the fraudulent loan proceeds to one of the co-conspirators, labeling them as marketing expenses to obscure their true nature. She spent the remainder of the funds on personal expenses and admitted awareness of additional fraudulent PPP loans obtained by her co-conspirators.

Legal Proceedings

United States District Judge Irene C. Berger imposed the sentence. United States Attorney Will Thompson commended the investigative work of the Federal Bureau of Investigation (FBI), while Assistant United States Attorneys Holly Wilson and Gabriel Price prosecuted the case.

Invetech LLC: Safeguarding Against Fraud

This case highlights the importance of rigorous background checks and continuous monitoring in financial transactions to prevent fraudulent activities. Invetech LLC provides advanced fraud detection and prevention solutions, helping organizations safeguard against fraud and ensure the integrity of their financial operations. By leveraging Invetech LLC's services, businesses can protect themselves from fraudulent schemes and maintain trust with their stakeholders.

Task Force on COVID-19 Fraud

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice, in partnership with agencies across the government, to enhance efforts to combat and prevent pandemic-related fraud. The Task Force aims to investigate and prosecute the most culpable domestic and international criminal actors and assist agencies tasked with administering relief programs in preventing fraud through coordination, resource identification, and information sharing.

For more information on the Department’s response to the pandemic, please visit justice.gov/coronavirus.

Utilizing a professional investigator to conduct a background check should be part of your SOP, not just when problems arise. Good leadership has a proactive approach to managing their investment utilizing a due diligence investigation to their fullest advantage. Invetech LLC helps clients mitigate financial loss by providing actionable insight solutions with due diligence investigation.

Two Illinois Men Sentenced for Conspiracy to Commit Bank Fraud, Bank Fraud, and Money Laundering Due Diligence Background Investigation

Two Illinois Men Sentenced for Multi-Million Dollar Bank Fraud Scheme

Erik Richard Jones, 46, and Mitchell Allen Melega, 38, were sentenced on July 23, 2024, to multi-year prison terms following their convictions for conspiracy to commit bank fraud, bank fraud, and money laundering. Jones, of Colona, Illinois, received a 54-month prison sentence, while Melega, formerly of Orion, Illinois, was sentenced to 75 months. Both men will also serve five years of supervised release and have been ordered to pay $4,840,944.63 in restitution.

Details of the Scheme

During the sentencing hearing in front of U.S. District Judge James E. Shadid, evidence was presented showing that between 2016 and 2017, Jones and Melega executed a scheme to provide false documents to First Midwest Bank in Moline, Illinois. These documents induced the bank to provide loans to Colona-based I-80 Equipment for vehicle purchases and improvements. As the owner of I-80 Equipment, Jones, along with Melega, who served as the controller, diverted the loan funds to unauthorized uses. They also directed employees to provide false information to support their fraudulent activities.

Additionally, they diverted real estate loan proceeds advanced by Northwest Bank in Davenport, Iowa, which were intended for renovations to an apartment complex Jones had purchased. Instead, the funds were used to pay off an unrelated loan for Jones's family members and cover unrelated business expenses of I-80 Equipment.

Judge Shadid noted the sophistication of the scheme, which involved altering legitimate documents, fabricating false documents, and included at least 110 vehicle purchases over an extended period.

Legal Proceedings

Both men were charged in October 2020 in a twelve-count indictment. The charges included conspiracy to commit bank fraud, bank fraud, and money laundering. Jones pleaded guilty in September 2023 to all counts, while Melega pleaded guilty in March 2024 to the same charges. The statutory penalties for conspiracy to commit bank fraud and bank fraud each carry up to 30 years of imprisonment per count, and money laundering carries up to ten years of imprisonment per count.

Statements from Officials

• U.S. Attorney Gregory K. Harris stated, “Our office is dedicated to prosecuting these serious financial crimes. Actions like the defendants’ cause significant harm to banks and undermine the stability of our financial system.”

• FDIC OIG Special Agent in Charge Vincent R. Zehme commented, “The defendants in this case have been brought to justice for defrauding First Midwest Bank and using the obtained funds for unauthorized purposes. The FDIC OIG will continue working with our law enforcement partners to hold individuals accountable who commit such fraudulent offenses.”

• IRS CI Special Agent in Charge Thomas F. Murdock remarked, “This sentence should serve as a warning to any potential fraudsters who think they can defraud banks and get away with it. The collective efforts of IRS CI, the FDIC-OIG, and the U.S. Attorney’s Office ensure those who engage in bank fraud and money laundering are vigorously investigated and brought to justice.”

• FBI Special Agent in Charge Christopher Johnson added, “The FBI, working with our federal and state partners, will vigorously investigate to uncover the truth and deliver accountability anytime anyone defrauds U.S. banks. The FBI remains committed to safeguarding our economic security from threats which could cause harm to American institutions.”

Invetech LLC: Safeguarding Financial Integrity

This case underscores the importance of thorough background checks and continuous monitoring in the financial sector to prevent and detect fraudulent activities. Invetech LLC offers advanced fraud detection and prevention solutions, helping organizations safeguard against fraud and ensure the integrity of their financial operations. By utilizing Invetech LLC's services, businesses can protect themselves from fraudulent schemes and maintain trust with their stakeholders.

The case was investigated by the IRS Criminal Investigation Division, the FDIC Office of Inspector General, the FBI Springfield Field Office, and the Illinois Secretary of State Police. Assistant U.S. Attorneys John Mehochko and Jennifer Mathew prosecuted the case.

For more information on fraud prevention and detection, visit Invetech LLC's website to explore their comprehensive range of services designed to protect your business from financial crimes.

Utilizing a professional investigator to conduct a background check should be part of your SOP, not just when problems arise. Good leadership has a proactive approach to managing their investment utilizing a due diligence investigation to their fullest advantage. Invetech LLC helps clients mitigate financial loss by providing actionable insight solutions with due diligence investigation.