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Technology / Software / Electronics
Southampton, Pennsylvania, United States
Nationality of Foreign Officials: European Bank for Reconstruction and Development
Summary of Allegations:
Between 2007 and 2009, Dmitrij Harder, the former owner, and CEO of Chestnut Consulting, allegedly paid approximately USD 3.5 million in bribes to Andrey Ryjenko, then senior official at the London-based EBRD. Allegedly to conceal the bribes, the bribes, in five payments, were allegedly paid via phony consulting and other service contracts Chestnut Consulting had with Tatjana Sanderson, Ryjenko's sister.
In exchange, Ryjenko allegedly influenced the application for EBRD financing submitted by the Chestnut Group's clients and directed business to the Chestnut Group. Of the approved applications, one involved an investment by the EBRD of USD 85 million and a €90 million (USD 107 million) loan and the second application resulted in a USD 40 million investment and a USD 60 million convertible loans. As a result of the EBRD's approval of these applications, Chestnut Consulting allegedly earned about USD 8 million in "success fees."
Approximate Alleged Payments to Foreign Officials: USD 3.5 million
Business Advantage Allegedly Obtained: Approval of financing for two of Chestnut Consulting's corporate clients, resulting in USD 8 million in success fees
Agencies: United Kingdom: City of London Police, Overseas Anti-Corruption Unit
Results: Prosecution of Public Officials
Year Resolved: 2017
Compliance Monitor:
Ongoing: No
Details:
On 13 April 2012, Andrey Ryjenko and Tatjana Sanderson were charged by the United Kingdom’s Crown Prosecution Service with accepting bribes and laundering USD 3 million in exchange for favorable loan treatment of Chestnut Consulting between September 2007 and March 2010.
The two are currently pending trial with the status conference set for 8 June 2016.
22 June 2017, Andrey Ryjenko was sentenced to six years for conspiring to make or accept corrupt payments.
22 August 2018, Tatjana Sanderson pleaded guilty to concealing, converting or transferring criminal property.
Agencies: United States: Department of Justice
Results: Plea Agreement, Prosecution of Individuals
Year Resolved: 2018
Compliance Monitor:
Ongoing: No
Details:
On 6 January 2015, a federal grand jury in Philadelphia indicted Dmitrij Harder, the former owner and president of Chestnut Consulting, for bribing an official of the EBRD. Harder was charged with one count of conspiracy to violate the FCPA and Travel Act, five counts of violating the FCPA, five counts of violating the Travel Act, one count of conspiracy to commit international money laundering, and two counts of money laundering.
On 3 March 2016, a motion to dismiss filed by Harder which had claimed that extending FCPA prohibitions to the EBRD, an international organization was unconstitutional was denied. The judge comprehensively denied the challenge and indicated that public international organizations are an association of foreign governments and thus covered under the FCPA.
On 20 April 2016, Harder pleaded guilty to two counts of violating the FCPA. On 18 July 2017, Harder was sentenced to 60 months imprisonment and was ordered to forfeit USD 1.9 million.
On 30 March 2018, Harder filed an appeal against the 60-month imprisonment sentence, requesting the court to consider the economic benefit brought by his bribe as a mitigating factor.
On 12 November 2018, a federal court affirmed the trial judge's decision.
Discovery Method: Internal Investigation
Details:
An internal investigation at the EBRD uncovered the suspicious transactions.
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