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.