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Aerospace / Defense / Security
Ottawa, Ontario, Canada
Nationality of Foreign Officials: India
Summary of Allegations:
On 15 August 2013, the head of CryptoMetric's Indian operations, Nazir Karigar, was found guilty of targeting prominent government officials in India in a bid-rigging scheme to win an airline security contract from Air India, an airline owned and controlled by the Government of India. Karigar is the first person convicted under Canada's Corruption of Foreign Public Officials Act ("CFPOA") for conspiracy to bribe officials - including an Indian cabinet minister - between June 2005 and January 2008.
Justice Charles Hackland came to the "inescapable conclusion" that Karigar was "an active and knowledgeable part of a conspiracy to offer bribes." In 2005, CryptoMetrics wired USD $250,000 to Karigar's Air India contact to be distributed to some members of the selection committee for the Air India security project, to ensure that CryptoMetrics was one of the only two companies qualified to bid on the contract. Karigar then organized a USD $200,000 bribe for then-minister of civil aviation Praful Patel. As an added incentive, Karigar and CryptoMetrics invited Air India officials to become part owners in CryptoMetrics.
CryptoMetrics USA had entered into a letter of agreement with Karigar in March 2007 that it would provide USD 250,000 "to secure the Air India contract." The money was expected to be returned if the contract was not secured.
After disclosures were made, the Royal Canadian Mounted Police ("RCMP") and the U.S. Federal Bureau of Investigations ("FBI") coordinated a joint investigation of CryptoMetrics spanning both countries. Although the FBI commented that "significant sums of money were paid out to agents and other persons around the world that appear to have been wasted funds and perhaps subsidized illegal activities," no one else has been formally charged.
Approximate Alleged Payments to Foreign Officials: Unspecified
Business Advantage Allegedly Obtained: Unspecified
Agencies: Canada: Royal Canadian Mounted Police
Results: Conviction, Prosecution of Individuals
Year Resolved: 2013
Compliance Monitor: Royal Canadian Mounted Police
Ongoing: No
Details:
In August 2013, Mr. Karigar was found guilty under the Corruption of Foreign Public Officials Act for his role in planning to bribe Indian officials. On 23 May 2014, Mr. Karigar was sentenced to three years in prison; his sentence is the first prison term for an individual convicted under Canada's anti-bribery law. The conviction was upheld on appeal on 6 July 2017.
On 5 June 2014, the RCMP charged Mr. Barra, Mr. Bernini, and Mr. Govindia with violating the Corruption of Foreign Public Officials Act. The RCMP alleged that the defendants were part of a failed bribery scheme by CryptoMetrics Canada to win a USD $100 million contract from Air India to supply facial-recognition software.
A "real and substantial link" may exist under Canada's Corruption of Foreign Public Officials Act even when a company's top two officials do not reside in Canada, the primary transactions relating to the bribers occurred in a foreign country, and employees of a state-owned entity constitute "foreign public officials."