Former Finance Minister Convicted In U.S. Over $2Billion Fraud, Money Laundering
The conviction follows his involvement in a massive $2 billion scheme that defrauded investors globally. The trial, presided over by United States District Judge Nicholas G. Garaufis, lasted four weeks.
Manuel Chang, the former Finance Minister of Mozambique, was found guilty by a federal jury on Thursday of conspiracy to commit wire fraud and money laundering.
The conviction follows his involvement in a massive $2 billion scheme that defrauded investors globally. The trial, presided over by United States District Judge Nicholas G. Garaufis, lasted four weeks.
Chang now faces the possibility of up to 20 years in federal prison when sentenced.
It was gathered that Chang was extradited to the Eastern District of New York in July 2023.
In a statement released on Thursday, by Breon Peace, the U.S. Attorney’s Office for the Eastern District of New York disclosed that Chang was arrested in South Africa in December 2018 pursuant to a provisional arrest warrant issued at the request of the United States.
Meanwhile, Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“Today’s verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world,” stated United States Attorney Peace. “Chang now stands convicted of pocketing millions in bribes to approve projects that ultimately failed, laundering the money, and leaving investors and Mozambique stuck with the bill.”
Principal Deputy Assistant Attorney General Nicole M, said, “While serving as Finance Minister of Mozambique, Manuel Chang obtained $7 million in bribe payments in exchange for signing guarantees to secure more than $2 billion in loans.”
Argentieri, head of the Justice Department’s Criminal Division, added, “Not only did Chang’s abuse of authority betray the trust of the Mozambican people, but his corrupt bargain also caused investors—including U.S. investors—to suffer substantial losses on those loans. Chang’s conviction today demonstrates that the Criminal Division is committed to combatting foreign corruption in violation of U.S. law, no matter where these schemes occur or whom they involve.”
According to Peace, as proven at trial, Chang received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for loans for three maritime projects.
As part of the scheme, Chang and his co-conspirators falsely stated to banks and investors that the loan proceeds would be used for the projects and that the borrower would not pay bribes to Mozambican government officials.
However, Chang and his co-conspirators facilitated the criminal diversion of more than $200 million of the loan proceeds that were used to pay bribes and kickbacks to Chang and others.
The statement said, “Between approximately 2013 and 2015, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators – including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company – ensured that Credit Suisse AG, (through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM).”
The attorney for the Eastern District of New York explained that the proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide equipment and services. Specifically, Proindicus was to conduct coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.
Meanwhile, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks.
