Verified Complaint for Forfeiture In Rem Case l:13-cv-01832-JDB Document 1 Filed 11/18/13 Asset Forfeiture and Money Laundering Section, Criminal Division, United States Department of Justice 1400 New York Avenue, NW, 10th Floor, Washington, DC 20005, [Excerpts only] I. Introduction 1. This is an action in rem to forfeit corporate entities and more than $500 million in other assets involved in an international conspiracy to launder proceeds of corruption in Nigeria during the military regime of General General his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu, and others embezzled, misappropriated, defrauded, and extorted hundreds of millions of dollars from the government of Nigeria and others, including through the three criminal schemes described herein. They then transported and laundered the proceeds of those crimes through conduct in and affecting the United States. The defendants in rem are subject to forfeiture as property involved in money laundering offenses in violation of U.S. law. 2. As alleged herein, in one scheme, General Abacha, together with Mohammed Sani Abacha, Bagudu, and others, systematically embezzled public funds worth billions of dollars from the Central Bank of Nigeria (CBN) on the false pretense that the funds were necessary for national security. After causing the CBN to disperse the funds, often in cash, General Abacha and Bagudu then moved the funds overseas, including through U.S. financial institutions (the Security Votes Fraud). In another scheme, General Abacha and his finance minister, Anthony Ani, caused the government of Nigeria to purchase non-performing government debt from a company controlled by Bagudu and Mohammed Abacha at vastly inflated prices, generating a windfall of over $282 million for Mohammed Abacha and Bagudu through U.S. financial transactions (the Debt Buy-Back Fraud). Finally, in the third scheme alleged herein, General Abacha and his associates extorted more than million from a French company and its Nigerian affiliate in connection with payments on government contracts (the Extortion). 3. Proceeds of the Security Votes Fraud were transported into and out of the United States in violation of U.S. law and pooled into bank accounts in London, where they were used to purchase hundreds of millions of dollars of U.S. dollar-denominated Nigerian bonds. The bonds generated tens of millions of dollars in interest paid through Citibank in New York and guaranteed by the United States; in effect the conspirators lent money stolen from Nigeria back to Nigeria with zero risk and at enormous profit. By 2007, the bonds were liquidated, and the proceeds from the sale of the bonds, together with the proceeds of the Debt Buy-Back Fraud and Extortion, were deposited into the defendant accounts, using the defendant corporate entities and through U.S. financial transactions, as described herein. The defendant corporate entities are registered in the British Virgin Islands, and bank accounts and investment firms holding the other defendant assets are located in the United Kingdom, France, and the Bailiwick of Jersey. IV. Factual Allegations A. Key Participants - General Abacha, his Associates, and their Corporate Entities 8. General Sani Abacha was a military officer in Nigeria who assumed the office of the President of the Federal Republic of Nigeria through a military coup on November He held the office of the President until his death on June 8, Prior to assuming the presidency, he served as Chief of Army Staff (1985-1989), Chairman of the Joint Chiefs of Staff (1989-1990), and Minister of Defense (1990-1993). As described herein, General Abacha conspired with others to steal and defraud hundreds of millions of dollars from Nigeria, extort money from third parties wishing to do business in Nigeria, and launder the proceeds of that theft, embezzlement, misappropriation, and extortion throughout the world. 9. Ibrahim Sani Abacha was the first son of General Sani Abacha. Ibrahim Abacha participated in the conspiracy to steal hundreds of millions of dollars from the Nigerian government and launder the proceeds around the world. He died in a plane crash in January 1996. 10. Mohammed Sani Abacha is the second son General Sani Abacha. After Ibrahim death, Mohammed Abacha assumed his brothers role in the conspiracy to steal hundreds of millions of dollars from Nigeria and launder the criminal proceeds throughout the world. Mohammed Abacha received and helped to launder more than $700 million in cash stolen directly from Nigerias public coffers. He also is a signatory and/or a corporate representative designated on many of the defendant assets. 11. Abubakar Atiku Bagudu was an associate of General Abacha and his sons who participated in the conspiracy to steal and launder hundreds of millions of dollars. Among other things, Bagudu played an instrumental role in setting up and executing the complicated financial transactions used to launder the proceeds of the conspiracy. He is also a signatory and/or corporate representative designated on many of the defendant assets. 12. Ismaila Gwarzo held the position of National Security Advisor (NSA) during the presidency of General Sani Abacha, and Gwarzo participated in the conspiracy to steal and launder hundreds of millions of dollars. Among other things, Gwarzo prepared and executed the false paperwork that caused the CBN to release hundreds of millions of dollars worth of U.S., U.K., and Nigerian currency as part of the Security Votes Fraud described below. 13. Alhaji Ahmadu Daura was an associate of the Abacha Family and operated the Sunshine Bureau de Change, a money exchange business located in Nigeria. Daura participated in the conspiracy by moving criminal proceeds out of Nigeria to accounts he controlled in England and by transferring criminal proceeds into and out of the United States to accounts controlled by the Abacha Family. 14. Anthony Ani held the position of Minister of Finance during the presidency of General Abacha. Minister Ani authorized the disbursement of Nigerian government funds in furtherance of the Security Votes Fraud and the Debt Buy-Back Fraud, both described below. 15. David Umaru was an attorney and associate of the Abacha family. Umaru participated in the conspiracy by communicating General extortion demands to third parties wishing to do business in Nigeria, including as described below to the owners of Group, a French-based construction company. [Points 16 to 24 list the names of companies used in these transactions, including Doraville Properties Corporation, incorporated in the British Virgin Islands; Eagle Alliance International Limited, incorporated in Ireland; Harbour Engineering and Limited, incorporated in the British Virgin Islands; Mecosta Securities, Inc., incorporated in the British Virgin Islands and holding accounts in London, Zurich, and Geneva; Morgan Procurement Corporation, incorporated in the British Virgin Islands and holding accounts in London; Rayville International, incorporated in the British Virgin Islands, and holding an account in Paris; Ridley Trust, registered in Guernsey, Channel Islands; Ridley Group Limited (Ridley Group),incorporated in the British Virgin Islands on June 10, 1997; and Standard Alliance Financial Services, Limited, incorporated in the British Virgin Islands.] [Official complaint goes on to detail the mechanisms used for obtaining the funds and laundering them through various accounts. For the full text visit justice.gov/opa/pr/2014/March/14-crm-230.html]
Posted on: Sat, 03 Jan 2015 17:07:51 +0000
Trending Topics
Recently Viewed Topics
© 2015