Settlements

ST-251
Latin Node Inc.
Latin Node Inc.
United States
Department of Justice
Honduras, Yemen
2009
04/07
[Yemen: investigation]
Legal Person
Criminal
Guilty Plea
Criminal Fine
$2,000,000.00
$2,000,000
$0
Art.16, Art.23, Art.26
Art. 1, Art. 2, Art. 7
Bribery of foreign officials
Bribery of foreign officials
Yes
According to the June 2011 United States Report to the OECD, "On March 23, 2009, Latin Node Inc. (LatiNode) was charged with one count of violating the anti-bribery provisions of the FCPA in connection with improper payment in Honduras and Yemen. According to court documents, LatiNode was a privately held Florida corporation that provided wholesale telecommunications services using Internet protocol technology in a number of countries throughout the world, including Honduras and Yemen. On December 14, 2010, LatiNode's former CEO and Vice President for Business Development, Jorge Granados and Manuel Caceres, were indicted by a Grand Jury in the Southern District of Florida on 19 counts of conspiracy, violations of the FCPA, and money laundering. Subsequently, on December 17, 2010, Manuel Salvoch, LatiNode's former CFO, and Juan Pablo V. Vasquez, a former senior commercial executive at LatiNode, were each charged with one count of conspiracy to violate the anti-bribery provisions of the FCPA." According to the Report, in Honduras, "between September 2006 and June 2007, these executives paid or caused to be paid more than $500,000 in bribes to the Honduran officials. In all, according to court documents filed in the case against LatiNode, between March 2004 and June 2007, the company paid or caused to be paid approximately $1,099,889 in payments to third parties, knowing that some or all of those funds would be passed on as bribes to officials of Hondutel. In addition to the payments for the interconnection agreement, LatiNode admitted that these payments were also, in part, intended to secure reduced call termination rates for the company's traffic. Each of these illicit payments originated from LatiNode's Miami bank account, and many of the payments were concealed by laundering the money through LatiNode subsidiaries in Guatemala and through accounts in Honduras controlled by Honduran government officials." In Yemen, according to the same Report, "LatiNode admitted that from approximately July 2005 through April 2006, the company made 17 payments totaling approximately $1,150,654 to a third-party consultant with the knowledge that some or all of the money would be passed on to Yemeni officials in exchange for favorable interconnection rates in Yemen. Each of these payments was also made from LatiNode's Miami bank account. Company e-mails indicated that company executives believed that potential recipients of these payments included Yemeni government officials." (Source: US Report to the Organisation for Economic Co-operation and Development, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," Information as of May 31, 2011, Latin Node, Inc. Case Summary at 29-30.) According to the World Bank Anti-Corruption Authorities website, Yemen was investigating the case (Source: Anti-Corruption Authorities, Yemeni Anti-Corruption Authority summary of work on Latin Node case, accessed on January 18, 2012 at http://www.acauthorities.org/aca/sucessstory/case-no-09-20239cr-houck-0-50-wvan-against-latin-no-de-inc-company.)