Saturday, August 26, 2017

US jails ex-Guinea minister 7 years, orders him to pay back $8.5m for laundering bribes


Mahmoud Thiam

A former Minister of Mines and Geology of the Republic of Guinea was sentenced to seven years in a US prison on Friday and ordered to pay back $8.5m for laundering bribes paid to him by a Chinese conglomerate in exchange for mining rights.

Mahmoud Thiam, 50, of New York, New York, was sentenced by U.S. District Judge Denise L. Cote of the Southern District of New York.  Thiam was convicted on May 3, after a seven-day trial of one count of transacting in criminally derived property and one count of money laundering.

Thiam, who was minister of mines and geology in Guinea from 2009-10 and is a US citizen, had faced a maximum sentence of 15 years.

Arrested in December 2016, prosecutors say he took millions of dollars in bribes from senior representatives of the Chinese conglomerate to facilitate mining rights while serving as a cabinet minister.

“Mahmoud Thiam engaged in a corrupt scheme to benefit himself at the expense of the people of Guinea,” said Acting Assistant Attorney General Blanco. “Corruption is a cancer on society that destabilizes institutions, inhibits fair and free competition, and imposes significant burdens on ordinary law-abiding people just trying to live their everyday lives.  Today’s sentence sends a strong message to corrupt individuals like Thiam that if they attempt to use the U.S. financial system to hide their bribe money they will be investigated, held accountable, and punished.”

“As a unanimous jury found at trial, Thiam abused his position as Guinea’s Minister of Mines to take millions in bribes from a Chinese conglomerate, and then launder that money through the American financial system,” said Acting U.S. Attorney Kim. “Enriching himself at the expense of one Africa’s poorest countries, Thiam used some of the Chinese bribe money to pay his children’s Manhattan private school tuition and to buy a $3.75 million estate in Dutchess County. Today’s sentence shows that if you send your crime proceeds to New York, whether from drug dealing, tax evasion or international bribery, you may very well find yourself at the front end of long federal prison term.”

"Thiam abused his official position, but the outcome shows that no one is above the law," said Assistant Director Stephen E. Richardson. "The FBI will not stand by while individuals attempt to live by their own rules and use the United States as a safe haven for their ill-gotten gains. I would like to applaud the dedicated investigators and prosecutors who have worked to hold those who have committed these crimes accountable for their illegal actions.”

“Today’s sentencing should remind the public that no matter who you are, or how much money you have, you’re not immune from prosecution.  The FBI will continue to use all resources at our disposal to uncover crimes of this nature and expose them for what they really are,” said Assistant Director in Charge Sweeney


According to evidence presented at trial, China Sonangol, CIF and their subsidiaries signed a series of agreements with Guinea that gave them lucrative mining rights in Guinea.  In exchange for bribes paid by executives of China Sonangol and CIF, Thiam used his position as Minister of Mines to influence the Guinean government’s decision to enter into those agreements while serving as Guinea’s Minister of Mines and Geology from 2009 to 2010.  The evidence further showed that Thiam participated in a scheme to launder the bribe payments from 2009 to 2011, during which time China Sonangol and CIF paid him $8.5 million through a bank account in Hong Kong.  Thiam then transferred approximately $3.9 million to bank accounts in the U.S. and used the money to pay for luxury goods and other expenses.  To conceal the bribe payments, Thiam falsely claimed to banks in Hong Kong and the U.S. that he was employed as a consultant and that the money was income from the sale of land that he earned before he was a minister. 
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