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Ex-ceo Arrested At JFK Airport For Scheme To Pay Millions Of Dollars In Bribes To Officials

The former CEO of a Brazilian chemical company was arrested this week at JFK Airport and charged with paying millions of dollars in bribes to government officials, federal officials said.

Jose Carlos Grubisch

Jose Carlos Grubisch

Photo Credit: FCPA Professor

Jose Carlos Grubisch, 62, was arrested on Wednesday, Nov. 20 and pleaded not guilty in Brooklyn federal court to violating anti-bribery and other provisions of the Foreign Corrupt Practices Act and conspiracy to commit money laundering.

Grubisch, who was the CEO of Braskem S.A. a Brazil-based petrochemical company involving their parent company, Odebrecht S.A. to a secret slush fund that was used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business.  

In total, while he was the CEO of Braskem between 2002 and 2008, Grubisch diverted approximately $250 million into the slush fund. It is alleged that he paid more than $16 million in bribes to officials to get a facility built in Brazil.


“As alleged in the indictment, Jose Carlos Grubisich used his position as CEO of a major publicly-traded petrochemical company to funnel hundreds of millions of dollars through offshore accounts to bribe power brokers and serve the interests of his company,” U.S. Attorney Richard Donoghue said. “Today’s indictment once again demonstrates the commitment of the U.S. Department of Justice to investigate and prosecute those who take advantage of the United States financial system to further their financial crimes.” 

On Dec. 21, 2016, Braskem and Odebrecht pleaded guilty in the Eastern District of New York to criminal information separately charging each with conspiracy to violate anti-bribery provisions of the Foreign Corrupt Practices Act for their involvement in the bribery and money laundering scheme.  

“Grubisich and other senior executives at Braskem and Odebrecht allegedly engaged in a massive and sophisticated international bribery and money laundering scheme, employing secret slush funds, shell companies, and false accounting,” Assistant Attorney General Brian Benczkowski added. “As demonstrated by the charges unsealed today, the Department continues to work closely with our domestic and international partners to root out and prosecute corporate fraud and corruption at the highest levels.”

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