The Pre-Drafted Letter to FCPA
Urgent Request for Investigation into Illegal Mineral Smuggling and FCPA Violations by Mining Companies in Haiti
Dear Mr. Charles Cain, Chief of the SEC’s FCPA Unit,
I am writing to you as an American citizen. I am deeply concerned about the illegal activities of several mining companies operating in Haiti, which are reportedly smuggling minerals out of the country under the guise of exploration and research.
These activities raise significant legal and ethical concerns regarding potential violations of both U.S. and international law, particularly the Foreign Corrupt Practices Act (FCPA), and other statutes addressing smuggling and racketeering.
HAITI; A CASE FOR THE FOREIGN CORRUPT PRACTICES ACT
Haiti ranks 172nd out of 180 countries on Transparency International's 2023 Corruption Perceptions Index, indicating highly corrupt public and private sectors. Despite the critical level of corruption in Haiti, no fines or penalties have been reported concerning the potential non-compliance of American mining companies with international anti-bribery and anti-corruption laws under the Foreign Corrupt Practices Act (FCPA).
This lack of enforcement is alarming, especially when compared to other SEC actions such as:
- SEC Charges Rio Tinto plc with Bribery Controls Failures - March 6, 2023
- SEC Charges Honeywell with Bribery Schemes in Algeria and Brazil - Dec. 19, 2022
- ABB Settles SEC Charges That It Engaged in Bribery Scheme in South Africa - Dec. 3, 2022
- SEC Charges Oracle a Second Time for Violations of the Foreign Corrupt Practices Act - Sept. 27, 2022
- SEC Charges Gol Intelligent Airlines, Brazil’s Second Largest Airline, with FCPA Violations
This lack of proactivity from the SEC and accountability of American mining companies is particularly concerning to 1.2 Million Haitian-Americans.
The Foreign Corrupt Practices Act of 1977 (FCPA), 15 U.S.C. §§ 78dd-1, et seq., prohibits U.S. entities from bribing foreign officials to gain business. It bans using mail or interstate commerce to corruptly offer payments or valuables to influence foreign officials' duties for business advantages.
Amendments in 1998 extended these provisions to foreign firms and individuals causing corrupt payments within the U.S. The FCPA also mandates that U.S.-listed companies maintain accurate records and adequate internal accounting controls, as specified in 15 U.S.C. § 78m.
COMPANIES AND SUSPECTED ILLEGAL ACTIVITIES
VCS MINING
Activity:
- Granted exploration rights for gold in Haiti.
- Engaged in attempts to exploit and extract mineral resources.
Politician Involved:
- Michel Martelly, Former President of Haiti.
Haitian Banks Involved:
- Unibank, Sogebank.
Illegal Activities:
- VCS Mining's operations failed to comply with necessary environmental and social impact assessments required under international law.
- Allegations include involvement in corrupt practices to secure favorable terms and expedite operations, potentially involving bribery of foreign officials to obtain and retain these permits, in violation of 15 U.S.C. §§ 78dd-1 and 78dd-2.
- The company may also have violated environmental regulations by neglecting to conduct thorough assessments mandated by the International Finance Corporation’s (IFC) Performance Standards on Environmental and Social Sustainability and the Equator Principles.
Related Articles of Law:
- 15 U.S.C. §§ 78dd-1 and 78dd-2 - Foreign Corrupt Practices Act (FCPA)
- 18 U.S. Code § 545 - Smuggling goods into the United States
- 18 U.S. Code § 1962 - Racketeer Influenced and Corrupt Organizations Act (RICO)
International Laws and Standards:
- IFC Performance Standards on Environmental and Social Sustainability: These standards require companies to identify, avoid, mitigate, and manage environmental and social risks and impacts throughout the project lifecycle.
- Equator Principles: A risk management framework adopted by financial institutions to determine, assess, and manage environmental and social risks in projects, mandating thorough impact assessments to mitigate adverse effects.
NEWMONT CORPORATION (NEM)
Activity:
- Holds exploration rights and 51 permits for prospecting and research in Haiti.
- Plans to recommence activities upon the passing of the Proposed Mining Law.
Politician Involved:
- Laurent Lamothe, Former Prime Minister of Haiti.
Haitian Banks Involved:
- Unibank,
- Sogebank.
Illegal Activities:
- Reports indicate involvement in the smuggling of minerals from Haiti without proper authorization, potentially involving bribery of foreign officials to secure permits and facilitate operations, in violation of 15 U.S.C. §§ 78dd-1 and 78dd-2.
Related Articles of Law:
- 18 U.S. Code § 545 - Smuggling goods into the United States
- 18 U.S. Code § 1962 - Racketeer Influenced and Corrupt Organizations Act (RICO)
EURASIAN MINERALS (EMX Royalty Corp) (EMX)
Activity:
- Partnered with Newmont and holds exploration rights covering over 281,000 hectares in Haiti.
Politician Involved:
- Laurent Lamothe, Former Prime Minister of Haiti.
Haitian Banks Involved:
- Unibank,
- Sogebank.
Illegal Activities:
- Allegations of smuggling minerals and failing to adhere to environmental and social governance standards, potentially involving bribery and corrupt payments to secure favorable terms and expedite operations, in violation of 15 U.S.C. §§ 78dd-1 and 78dd-2.
Related Articles of Law:
- 18 U.S. Code § 545 - Smuggling goods into the United States
- 18 U.S. Code § 1962 - Racketeer Influenced and Corrupt Organizations Act (RICO)
MAJESCOR RESOURCES INC. (MJX)
Activity:
- Granted exploration rights for gold and copper.
Politician Involved:
- Laurent Lamothe, Former Prime Minister of Haiti.
Haitian Banks Involved:
- Unibank,
- Sogebank.
Illegal Activities:
- Involved in the illegal export of minerals under the guise of research and exploration, potentially involving bribery of officials to obtain and retain these permits, in violation of 15 U.S.C. §§ 78dd-1 and 78dd-2.
Related Articles of Law:
- 18 U.S. Code § 545 - Smuggling goods into the United States
- 18 U.S. Code § 1962 - Racketeer Influenced and Corrupt Organizations Act (RICO)
RESOURCES GENERALE CORPORATION
Activity:
- Holds valid exploitation permits as of 2022.
Politician Involved:
- Various Haitian officials implicated in facilitating contracts.
Haitian Banks Involved:
- Unibank,
- Sogebank.
Illegal Activities:
- Suspected of engaging in the smuggling of minerals and potentially using corrupt payments to foreign officials to facilitate their activities, in violation of 15 U.S.C. §§ 78dd-1 and 78dd-2.
Related Articles of Law:
- 18 U.S. Code § 545 - Smuggling goods into the United States
- 18 U.S. Code § 1962 - Racketeer Influenced and Corrupt Organizations Act (RICO)
SONO GLOBAL HOLDINGS, Inc.
Activity:
- Holds expired prospection and research permits.
Politician Involved:
- Various Haitian officials implicated in facilitating contracts.
Haitian Banks Involved:
- Unibank,
- Sogebank.
Illegal Activities:
Involvement in the smuggling of minerals and potentially making corrupt payments to officials to renew or extend permits, in violation of 15 U.S.C. §§ 78dd-1 and 78dd-2.
Related Articles of Law:
- 18 U.S. Code § 545 - Smuggling goods into the United States
- 18 U.S. Code §
ADDENDUM: Accusations and Suspicious Activities of Haitian Officials with Financial Institutions Involvement
SHERIF ABDALLAH
- Sanctioned by the Canadian government for allegedly financing armed gangs, money laundering, and other acts of corruption.
- Accused of facilitating the illegal entry of large-caliber weapons into Haiti, which are then distributed to armed criminals.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Former vice president of Sogebank, linked to multiple offshore companies used for potentially illicit activities.
Net Worth:
- Exact net worth not documented, but significant due to his position and involvement in major financial activities in Haiti.
REGINALD BOULOS
- Multiple accusations of corruption and financial misconduct.
- Implicated in schemes involving the misuse of public funds and has strong ties with powerful Haitian families involved in illicit activities.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Known associations with Unibank and other local financial institutions.
Net Worth:
- Approximately $620 million.
Ethnicity/Nationality of Origin:
- Lebanon
Company:
- GB Group
ROGER JAAR
- Involvement in various financial misdeeds as revealed in the Pandora Papers, including the use of shell companies for discreet wealth management and potential tax evasion.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Involved in significant financial operations in Haiti and abroad, including the ownership of the Coca-Cola bottling license in Haiti. His business activities are linked to various shell companies established in the late 1980s.
Net Worth:
- Estimated to be substantial due to diverse business holdings, though exact figures are not publicly disclosed.
Ethnicity/Nationality of Origin:
- Arab-Palestinian descent, born in Fort-de-France, Martinique, and primarily operating out of Miami.
Companies:
- Brasserie de la Couronne: One of Haiti’s oldest soft drink companies.
- Les Brasseurs RJ: A microbrewery located in Montreal, Quebec, Canada.
- Universal Trading & Engineering Corporation (UTECO): Providing cost-effective services and solutions to utility companies in the international marketplace.
- Universal Beverages LLC: Established in 2001, involved in various beverage operations.
- Belvil Real Estate, Inc.
- Energy System Management, Inc.
- Rj Lantern Square, LLC
- Rj Growers, LLC
- Amd Development, LLC
- Bms Wellness, LLC
- Gourmetfresh Foods, Inc.
- R. Jaar Holdings, Inc.
- Domaine Souviou: An estate in Provence, France, known for its olive oil and wine production.
GREGORY MEVS
- Linked to various allegations of financial misconduct and corruption, particularly in relation to the misuse of PetroCaribe funds.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Engaged in financial dealings through local banks such as Unibank and SOGEBANK.
Net Worth:
- Around $1 billion.
GREGORY BRANDT
- Faced allegations related to financial corruption and mismanagement within Haiti's financial sector.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Likely involved with Haitian financial institutions, including Unibank.
Net Worth:
- Specific net worth not documented, but significant due to his business involvement.
CARL BRAUN
- Vice-president of Unibank's board, implicated in corruption and financial mismanagement activities, as well as potential involvement with armed gangs.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Directly associated with Unibank.
Net Worth:
- Detailed financial data not widely published, but likely substantial given his role.
MARC ANTOINE ACRA
- Linked to several scandals, including allegations of drug trafficking and financial corruption.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Associated with multiple Haitian banks, including Unibank and SOGEBANK.
Net Worth:
- About $600 million.
ANDRE APAID
- Accused of engaging in corrupt practices and financial mismanagement, with connections to other prominent Haitian business figures involved in illicit activities.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Likely associated with local financial institutions like Unibank and SOGEBANK.
Net Worth:
- Specific financial details not widely available, but significant given family wealth and business operations.
Banking:
- Banking relationships with Haitian banks like Unibank for political finances.
YOURI LATORTUE
- Drug Dealing: Allegedly involved in drug trafficking networks.
- Corruption: Accused of facilitating money laundering activities.
- 31 U.S. Code § 5336 - Transparency in corporate ownership.
- Likely has connections with major Haitian financial institutions.
RONY CELESTIN
- Corruption: Sanctioned by the US for significant corruption, including embezzlement of state funds.
- 31 U.S. Code § 5318(k) - Prohibition on correspondent accounts for foreign shell banks.
- Utilizes local banks for concealing corruptly acquired funds.
MICHEL MARTELLY, Former President
- Allegations of receiving $2.6 million in bribes from Dominican Senator Félix Bautista to secure post-earthquake public works contracts.
- Involvement in a scheme imposing fees on money transfers, food remittances, and international calls, collaborating with several financial entities including Unibank, Caribbean Air Mail, Inc., Unitransfer USA Inc., Unigestion Holding, S.A. (d/b/a Digicel Haiti), and Western Union Company.
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
- Utilized Unibank S.A. for personal financial transactions, including securing a $9 million loan for a beach house.
LAURENT LAMOTHE, Former Prime Minister
- Sanctioned by the US for misappropriating at least $60 million from the PetroCaribe fund intended for infrastructure investment and social welfare.
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
- Linked with financial dealings through Unibank and international transfers.
JEAN-HENRY CEANT, Former Prime Minister
- Pending further specific allegations, known associations with financial mismanagement within the Martelly administration.
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
- Associated with Haitian financial institutions like Unibank and SOGEBANK for political and business transactions.
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HERVE FOURCAND, Former Senator
- Involved in financial mismanagement and corruption during tenure.
- 31 U.S. Code § 5322 - Criminal penalties.
- Known associations with Unibank and other financial institutions.
GARY BODEAU, Former President of the Chamber of Deputies
Accusations:- Suspected of engaging in corrupt financial practices and supporting illicit activities.
- 31 U.S. Code § 5323 - Whistleblower incentives and protections.
- Likely engaged with Haitian banks for illicit financial activities.
KENNETH MERTEN
- Former U.S. Ambassador to Haiti, involved in supporting political figures and administrations accused of corruption.
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties