ID: ARW-48
David B. Chalmers, Jr. / Bayoil (USA) Inc. / Bayoil Supply & Trading, Limited (UN Oil-for-Food)
According to a press release by the United States Attorney's Office for the Southern District of New York, on August 7, 2007, David B. Chalmers, Jr. and his companies - Bayoil (USA) Inc., and Bayoil Supply & Trading, Limited - pleaded guilty to one count of conspiracy to commit wire fraud, in relation to their involvement in a kick-back scheme related to the UN Oil-for-Food program in Iraq. (Source: United States Attorney's Office for the Southern District of New York Press Release, "U.S. ANNOUNCES FOUR GUILTY PLEAS IN OIL-FOR-FOOD CASE," August 17, 2007)
As described in the Order of Restitution in the case, as part of their sentencing, Chalmers and the Bayoil companies had been ordered to pay restitution of $9,016,151.40, for which they had joint and several liability; the March 25, 2008 Order of Restitution ordered the three to pay the restitution to the Development Fund of Iraq, in care of Ambassador Srood Najib, to be used as restitution for the benefit of the Iraqi people. (Source: US v. Chalmers, et al, Case No. 1:05-cr-00059-DC (S.D.N.Y.), Order of Restitution filed on March 25, 2008.)
The Development Fund of Iraq was established on May 21, 2003, by United Nations Security Council Resolution 1483 and originally overseen by the Coalition Provisional Authority, then by the Interim Iraqi government with the oversight of the International Advisory and Monitoring Board for Iraq; as of July 2011, the Government of Iraq assumed full autonomy for the proceeds of the Development Fund for Iraq. (Source: United Nations Security Council Press Statement, SC/10307, IK/636, "Security Council Statement on the Development Fund for Iraq," June 30, 2011.)
According to the Order of Restitution filed in US v. Chalmers, et al, on August 7, 2007, David B. Chalmers, Jr. and his companies - Bayoil (USA) Inc., and Bayoil Supply & Trading, Limited - pleaded guilty to one count of conspiracy to commit wire fraud, in violation of Section 1349 of Title 18, United States Code. (Source: US v. Chalmers, et al, Case No. 1:05-cr-00059-DC (S.D.N.Y.), Order of Restitution filed on March 25, 2008.)
In the jurisdiction of asset recovery (United States), the investigative agency was the Federal Bureau of Investigation, Criminal and Counterintelligence Divisions.
The prosecuting authority/civil attorney(s) was the United States Attorney for the Southern District of New York.
The court involved was the U.S. District Court for the Southern District of New York.
The contributing factors in this asset recovery were, when announcing the guilty pleas, the United States Attorney for the Southern District of New York, Mr. Michael Garcia "praised the work of the Federal Bureau of Investigation, Criminal and Counterintelligence Divisions. He also expressed appreciation to the United States Treasury Department, Office of Foreign Assets Control; the United States Department of State; the United Nations Office of Legal Affairs; and the former Independent Inquiry Committee into the United Nations Oil-for-Food Program for their assistance in this investigation." (Source: United States Attorney's Office for the Southern District of New York Press Release, "U.S. ANNOUNCES FOUR GUILTY PLEAS IN OIL-FOR-FOOD CASE," August 17, 2007.)