Feds accuse a former oil trader of participating in a global bribery scheme with Mexican government officials

Federal officials revealed Monday that a former oil trader for a U.S. subsidiary of one of the biggest energy trading companies in the world has been accused in relation to a worldwide bribery conspiracy.

According to federal prosecutors, Javier Aguilar of Texas has been charged with violating the U.S. Foreign Corrupt Practises Act for allegedly paying bribes to employees of Petróleos Mexicanos, or PEMEX, a state-owned oil firm in Mexico, and its subsidiary, PPI, in order to secure business for Vitol Inc.

Three years after Vitol paid more than $135 million to resolve a related probe

Authorities said Monday that Aguilar will make his first appearance in federal court. According to the U.S. Attorney's Office, between 2017 and 2020, Aguilar paid bribes to Mexican officials in exchange for insider knowledge that helped Vitol secure the company's business. Aguilar is accused of paying bribes in one instance totaling nearly $600,000 to get a deal to supply ethane to PEMEX via PPI.

The indictment claims that Aguilar used middlemen and shell businesses to transfer bribe payments to local and foreign bank accounts in order to hide the bribery conspiracy. Prosecutors claim that the businesses also communicated about the conspiracy using code names, encrypted chat platforms, and non-business email addresses.

Monday was Aguilar's first scheduled appearance in Houston.

For allegedly paying bribes in Ecuador to secure business for Vitol, Aguilar is also accused in the New York Eastern District Court. The case is still pending after a federal grand jury returned an indictment in September 2020.

In 2020, Vitol Inc. resolved a related bribery action.

According to previously released information, Vitol and the U.S. Department of Justice reached a settlement in 2020 for more than $135 million to end the investigation and related Brazilian probe.

Between 2005 and 2020, the business is alleged to have paid millions in bribes to Brazil, Ecuador, and Mexico. In return, the business received private information about pricing, rivals, and other topics. In court records, Aguilar was identified as a participant in the bribery plot.

According to officials, Vitol also consented to “disgorge” more than $12.7 million and pay a $16 million fine to the Commodity Futures Trading Commission in a “related matter”.

“Vitol is dedicated to following the law and will not stand for fraud or unethical business practices. Authorities have acknowledged that Vitol has provided substantial cooperation throughout this process. We recognize the gravity of this situation and are relieved that it has been resolved.

According to best practices, we will keep improving our policies and procedures, Vitol CEO Russell Hardy earlier stated in a statement on the 2020 settlement.

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