A former executive of Corsa Coal Corporation has been convicted by a federal jury for taking part in an international bribery and money laundering scheme.
The executive, Charles Hunter Hobson, served as a vice president at the coal company and was responsible for international sales. The case involved secret payments to government officials in Egypt to win major coal supply contracts worth nearly $140 million.
According to court documents and evidence presented at trial, Hobson agreed to pay bribes to Egyptian government officials. These officials had influence over whether coal contracts would be awarded.
The contracts were connected to business with Al Nasr Company for Coke and Chemicals, a state-owned and state-controlled chemical manufacturing company in Egypt.
The jury found that the payments were not legitimate business expenses. Instead, they were bribes disguised as sales commissions.
How Charles Hunter Hobson Carried Out the Bribery Scheme
The scheme lasted for several years, from 2016 through 2020.
During that time, Charles Hunter Hobson and others worked with an intermediary in Egypt. This intermediary acted as a middleman. On paper, the middleman was paid commissions for helping secure sales.
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In reality, prosecutors showed that more than $4.8 million was paid to the intermediary as supposed sales commissions. These funds were then used to pay bribes to Egyptian officials.
The officials involved were referred to in court as “the Team.” The payments were made so that coal contracts would continue to be awarded to Corsa Coal Corporation.
The bribes were not paid openly. Instead, the money moved through bank accounts in the United States and the United Arab Emirates. This process was used to hide the true purpose of the payments.
In addition to arranging the bribes, Hobson secretly received more than $200,000 in kickbacks from the intermediary. These payments were part of the same scheme.
The case involved violations of the Foreign Corrupt Practices Act, also known as the FCPA. This U.S. law makes it illegal for American businesses or their employees to bribe foreign government officials in order to win or keep business.
Prosecutors told the jury that Hobson conspired to violate this law and also worked to launder money in order to conceal the payments.
Jury Verdict and Charges Against Charles Hunter Hobson
After reviewing the evidence, the federal jury convicted Charles Hunter Hobson on multiple counts.
The convictions include:
- One count of conspiracy to violate the Foreign Corrupt Practices Act
- Two counts of violating the Foreign Corrupt Practices Act
- One count of conspiracy to commit money laundering
- Two counts of money laundering
- One count of conspiracy to commit wire fraud
Each FCPA-related count carries a maximum penalty of five years in prison. The money laundering and wire fraud conspiracy counts each carry a maximum penalty of up to 20 years in prison.
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A federal district court judge will decide the final sentence. The judge will consider U.S. Sentencing Guidelines and other legal factors before making a decision.
Another executive from Corsa Coal Corporation, Frederick Cushmore Jr., previously pleaded guilty for his role in the same bribery and money laundering scheme. He is currently awaiting sentencing.
In March 2023, the U.S. Department of Justice resolved its investigation into Corsa Coal Corporation. The resolution included a declination, meaning the company was not prosecuted. However, the company agreed to disgorge profits connected to the misconduct under the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy.
Statements about the case were made by officials including A. Tysen Duva of the Justice Department’s Criminal Division, U.S. Attorney Troy Rivetti for the Western District of Pennsylvania, and Darren Cox of the FBI Washington Field Office.
The investigation was carried out by the FBI’s International Corruption Unit in Washington, D.C., along with the Washington Field Office.
Trial Attorneys Natalie Kanerva and Ligia Markman of the Criminal Division’s Fraud Section, along with Assistant U.S. Attorney Nicole Stockey for the Western District of Pennsylvania, prosecuted the case.
The case focused on foreign bribery, money laundering, and wire fraud tied to international coal supply contracts in Egypt.