The corruption cases databases are a product of the staff of the International Bank for Reconstruction and Development / The World Bank. It is intended for general information purposes only. The findings, interpretations, and conclusions expressed in the Database do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Neither the World Bank Group nor its officers or employees shall be liable for any losses that may result directly or indirectly from the use of or reliance upon such information.
El Paso Corporation
El Paso Corporation
United States Attorney for the Southern District of New York
Conspiracy to Defraud the United States, Wire Fraud
Failure to Maintain Internal Controls
According to El Paso Corporation's Non-Prosecution Agreement with the United States Attorney for the Southern District of New York, following the merger between El Paso Corporation and The Costal Corporation, "EL PASO purchased Iraqi oil from third-party intermediaries and/or allocation holders. Although EL PASO took steps designed to prevent the purchase of Iraqi oil from third parties on which illegal surcharges had been paid, such procedures proved inadequate. The United States Government has represented to EL PASO that records maintained by the former Government of Iraq and its agents demonstrate that, from June 2001 until May 2002, EL PASO purchased Iraqi oil for which third-party intermediaries and/or allocation holders paid approximately $5.48 million in illegal surcharges to the former Government of Iraq. These surcharge payments were not deposited into the Oil-for-Food Program's escrow account, which was established to purchase humanitarian goods for the Iraqi people. [ ] It is the intent of the United States Attorney's Office for the Southern District of New York to seek the transfer of these funds to the Development Fund for Iraq [ ] to be used as restitution to the Iraqi people as the intended beneficiaries of the proceeds of all Iraqi oil pursuant to the United Nations Oil-for-Food Program." (Source: In Re: El Paso Corporation, Non-Prosecution Agreement with the United States Attorney for the Southern District of New York, Department of Justice, February 5, 2007.)
In Re: El Paso Corporation, Non-Prosecution Agreement with the United States Attorney for the Southern District of New York, February 5, 2007, accessed at http://fcpa.shearman.com/files/82c/82c7a6a47d469bdfa8a7c6d82bf03737.pdf?i=dfef6d9305307bf27b828e9290194bef; United States Attorney for the Southern District of New York Press Release, "Texas Oil Executive and Two Corporations Sentenced on Charges Involving a Scheme to Pay Secret Kickbacks to the Former Government of Saddam Hussein," March 7, 2008, accessed at http://www.justice.gov/usao/nys/pressreleases/March08/chalmersetalsentencingpr.pdf
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