A former Goldman Sachs banker, Asante Kwako Berko, has been convicted by a federal jury for his role in a scheme to bribe Ghanaian officials in connection with a power plant project in Ghana.
He was found guilty of conspiracy to violate the Foreign Corrupt Practices Act, substantive FCPA violations, and money laundering conspiracy.
Case Details
The case centered on a transaction involving Turkish energy company Aksa Enerji, then a Goldman Sachs client, and the Republic of Ghana.
Beginning in December 2014, Berko was responsible for securing and managing the deal.
Prosecutors said he and his co-conspirators sought to influence officials at several levels of the Ghanaian government, including discussions in April 2015 about paying $1 million to the country’s Minister of Power.
Evidence presented at trial also showed that five Ghanaian officials each received $5,000 during an all-expenses-paid trip to Turkey.
Concealment and Laundering
Berko concealed the conduct from Goldman Sachs’ compliance team and used a personal email account when discussing bribes.
He and his co-conspirators also concealed and laundered payments through shell companies, sham invoices, nominee account holders, and cash withdrawals.
Goldman Sachs ultimately withdrew from the deal because of corruption concerns.
The conviction highlights the exposure that can arise for solicitors and in-house counsel before an international transaction reaches completion.
Transactional lawyers advising banks, infrastructure investors, and multinational businesses may need to examine the conduct of employees, intermediaries, and local counterparties alongside contractual and financial due diligence.
International Cooperation
The prosecution involved authorities across several jurisdictions.
The FBI investigated the case, while the Justice Department’s Office of International Affairs worked with the Office of the Attorney-General of Ghana and Ghana’s Office of the Special Prosecutor.
The FBI and other agencies, including the UK’s National Extradition Unit, Crown Prosecution Service of England and Wales, U.S. Embassy in London, and U.S. Marshals Service, assisted with Berko’s arrest and extradition.
Berko is due to be sentenced on November 10 and faces a maximum penalty of 30 years in prison.
The Justice Department’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters, leaving law firms and corporate legal teams with another enforcement example to consider when assessing anti-bribery controls around international financing and infrastructure transactions.
International transactions can be complex and require careful scrutiny to prevent corruption.
Companies and governments working together on large-scale projects must be aware of the potential risks and take steps to prevent them.
They can implement robust compliance programs and conduct thorough due diligence on their partners and counterparties.
The case against Berko was built on evidence of bribery and corruption, and his conviction serves as a reminder of the importance of complying with anti-bribery laws.
The U.S. Department of Justice has made it clear that it will pursue cases of corruption and bribery, regardless of where they occur.
Asante Kwako Berko’s conviction is a significant development in the fight against corruption.
Law firms can learn from this case by reviewing their own compliance procedures and ensuring they are adequate to prevent similar situations.
Companies involved in international transactions must be vigilant and take all necessary steps to prevent corruption.
It is essential for them to understand the risks involved and take proactive measures to mitigate them.
One way to do this is to conduct thorough injury claims investigations and due diligence on all parties involved.
This approach can help companies avoid potential pitfalls and ensure they are in compliance with all relevant laws and regulations.
The U.S. Department of Justice’s commitment to pursuing corruption cases is a clear indication that companies must take these issues seriously.
By prioritizing compliance and taking a proactive approach, companies can minimize their risk of being involved in corruption scandals.
As companies handle complex international transactions, they must remain aware of the potential risks and take steps to mitigate them.
Failure to do so can result in severe consequences, as seen in the case of Asante Kwako Berko.
Companies must also be aware of the importance of senior notes and other financial instruments in international transactions.
Understanding these complex financial instruments is key for companies to handle international transactions successfully.
