Asset Recovery Watch

ARW-48
David B. Chalmers, Jr. / Bayoil (USA) Inc. / Bayoil Supply & Trading, Limited (UN Oil-for-Food)
United States
NA
Iraq [Development Fund for Iraq], United States
Undertaking Recovery Effort, Location of Recovery Effort, Asset Location / Alleged Asset Location
2005
2008
Art. 2, Art.14, Art.16
No
Criminal Prosecution, Criminal Restitution
Unknown
Unknown
In 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.)
Completed
Assets Returned to Victim or Requesting Jurisdiction
$9,016,151.4
No
NA

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.)

Independent Inquiry Committee into the United Nations Oil-for-Food Program
NA
NA
Federal Bureau of Investigation, Criminal and Counterintelligence Divisions
United States Attorney for the Southern District of New York
U.S. District Court for the Southern District of New York