Javier Aguilar, a former energy trader for Vitol Inc., pleaded guilty to participating in a $600,000 bribery scheme involving officials at PEMEX Procurement International to secure lucrative contracts. The case, part of a broader crackdown on corruption in the global energy sector, could result in Aguilar facing up to 40 years in prison.
HOUSTON—Javier Aguilar, a former energy trader for Vitol Inc., has entered a guilty plea to his role in a bribery conspiracy that involved the payment of roughly $600,000 in bribes to officials at PEMEX Procurement International (PPI), a subsidiary of Petróleos Mexicanos (PEMEX), the state-owned oil firm in Mexico.
Aguilar submitted his guilty plea in federal court in Brooklyn, New York, where he also consented to the transfer of his Texas case for consolidation with other cases that were related to the same incident.
Between 2015 and 2020, Aguilar, who is now fifty years old, worked in Vitol's Houston office. During that time, he and his fellow conspirators acquired lucrative contracts by bribing key officials. To disguise their illicit actions, they used phony contracts, spurious invoices, and shell businesses with headquarters in Curacao and Mexico.
Code terms such as "shoes," "medicine," "invitations," and "coffee" were used in the communication regarding the bribery, which took place using alias email accounts.
United States Attorney Breon Peace underscored the severity of Aguilar's actions by stating that his guilty plea today acknowledges his involvement in the international commodities market's widespread corruption and his disregard for the laws and regulations that govern all in order to enrich a select few.
Peace also emphasized that Aguilar admitted his role in the corruption. He further stated that such corrupt actions erode the public's trust and will not be accepted.
As a condition of his plea agreement, Aguilar has consented to the forfeiture of more than seven million dollars. He is facing a potential term of forty years in prison for conspiracy to commit money laundering, in addition to five years for each of the other violations relating to the Foreign Corrupt Practices Act (FCPA).
A previous conviction on similar crimes involving bribery of Ecuadorian authorities was handed down in February, and his guilty plea in this case follows that conviction.
In connection with this scam, Aguilar is one of seven co-conspirators who have entered guilty pleas, and they have collectively agreed to forfeit more than $63 million.
Vitol's prior admission of wrongdoing and its $135 million settlement with the Department of Justice in 2020 highlight ongoing efforts by federal prosecutors to combat corruption in the global energy industry. This is especially important given that Vitol has admitted to breaking the law.
Critics believe that despite the enormous penalties, the financial consequences for Aguilar and Vitol constitute a small fraction of the revenues earned through their fraudulent activities.
There are also questions over whether these procedures are adequate to prevent such activity in the future, particularly given the magnitude of the contracts obtained using bribery tactics.
As the judicial procedures continue, the case of Aguilar serves as a sharp reminder of the difficulties that are encountered when attempting to maintain integrity within the energy industry, as well as the significance of holding accountable those who engage in corrupt actions.
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