Connecticut Trader Convicted in Petrobras Bribery Case, Reports Reuters

By Jonathan Stempel

A Connecticut oil and gas trader was convicted on Thursday for his role in a nearly eight-year scheme to bribe officials at Brazil’s state-owned oil company, Petrobras, in order for two trading firms based in Connecticut to secure business, according to U.S. prosecutors.

Glenn Oztemel, 65, from Westport, Connecticut, was found guilty by a jury in Bridgeport, Connecticut, on all seven charges he faced, which included money laundering, conspiracy, and violating the federal Foreign Corrupt Practices Act.

Oztemel, along with Eduardo Innecco, a Brazilian-Italian oil and gas broker, was accused of bribing officials to assist Arcadia Fuels and Freepoint Commodities in obtaining contracts and gaining access to confidential information regarding Petrobras’ fuel oil business.

Prosecutors stated that Oztemel paid over $1 million in bribes, which were distributed between Petrobras officials in Brazil and Rodrigo Berkowitz, a Petrobras fuel trader based in Houston.

The defendants reportedly used coded language, referring to bribes as "breakfast," "breakfast servings," and "freight deviation."

The illegal activities allegedly took place between 2010 and 2018. Oztemel was employed by both Arcadia and Freepoint before retiring in 2020.

Oztemel’s lawyer, Nelson Boxer, expressed disappointment in the verdict, stating, "Glenn has had an unblemished record for 40 years in the oil industry, and we will continue to fight to clear Glenn’s good name."

Innecco is currently awaiting extradition from France to face charges in the U.S. Additionally, Oztemel’s brother, Gary Oztemel, pleaded guilty to a related money laundering charge in June.

In December, Freepoint, headquartered in Stamford, Connecticut, entered into a deferred prosecution agreement and agreed to pay over $98 million to resolve related bribery charges in the U.S.

Brazilian authorities had been investigating Freepoint employees as part of Operation Car Wash, a lengthy investigation into suspected bribery involving Petrobras.

Rodrigo Berkowitz pleaded guilty to a money laundering conspiracy charge in February 2019 in Brooklyn but has not yet been sentenced, according to court records.