b'Sucre agreed to renew Insurance Brokers MOD policy The complaint further alleges that Berkoin exchange for bribery payments. Specifically, the scheme operated such that the Insurance Broker made was acting as an employee and/or agentcommission payments to the Reinsurance Introducer, of U.S.-based Goldman Sachs, an issuer, ata portion of which Aviles then laundered through a variety of bank accountssome in the United States all relevant times.for the benefit of the Chairman of Seguros Sucre, Juan Ribas Domenech (Domenech). At the time, Domenench served as an advisor to the then-President While Berko is a U.S. citizen, his nationality is not aof Ecuador and had authority over the awarding of sufficient basis for SEC authority. The complaint furtherSeguros Sucre business. alleges that Berko was acting as an employee and/orThe commission payments, which totaled around $10.8 agent of U.S.-based Goldman Sachs, an issuer, at allmillion, nearly all flowed through U.S.-based accounts relevant times. As additional basis for jurisdiction, theheld by an intermediary Cayman Islands company. In SEC points out that: (a) funds were transferred throughall, Aviles company transferred approximately $1.432 wire communications to banks in New York and thenmillion in cash and another $1.975 million in securities to on to individuals and entities in Ghana; and (b) Berkovarious accounts held for the benefit of Domenech. used the means and instrumentalities of United StatesThe DOJ filed a criminal complaint in the U.S. District interstate commerce including, among other things,Court for the Southern District of Florida against using a United States-based email account and emailAviles, Domenech, and Felipe Moncaleano Botero (an service provider to advance the bribery scheme.Insurance Broker executive) on February 13, 2020, The SEC is seeking monetary penalties, among otherthen severed the cases into individual actions. Aviles punitive measures. pleaded guilty for his part and was ordered to forfeit $3.157 million. United States v. Jose Vicente Gomez Aviles, No. 20-CR-20169-KMW (S.D. Fla.)On June 11, 2020, Jose Vincente Gomez AvilesThe commission payments, which totaled (Aviles) pleaded guilty to one count of conspiracy toaround $10.8 million, nearly all flowed commit money laundering in furtherance of violationsthrough U.S.-based accounts held by an of the FCPA, resolving charges that were filed on April 23, 2020. Aviles was one of three defendants chargedintermediary Cayman Islands company.in connection with a scheme to secure contracts with Seguros Sucre, a state-owned insurance company in Ecuador that performed government functions for and on behalf of Ecuador. Actions against the two otherUnited States v. Luis Enrique Martinelli defendants remain open. Linares and Ricardo Alberto Martinelli Aviles, an Ecuadorian citizen and a U.S. lawful perma- Linares, No. 20-M-498 (E.D.N.Y.)nent resident, was one of the owners of a privateOn July 6, 2020, the U.S. District Court for the Eastern Panama registered reinsurance company. The companyDistrict of New York unsealed a criminal complaint is described as a Reinsurance Introducer andcharging two brothers for their roles in what the DOJ specifically operated to help companies obtain andhas described as the largest foreign bribery case retain contracts with Seguros Sucre in exchange forin history. The underlying actionUnited States v. receiving a commission. One client of Aviles companyOdebrecht, S.A., No. 16-643 (E.D.N.Y.)concerned was a UK-based reinsurance broker and risk adviseran unparalleled bribery and bidding scheme by and (Insurance Broker). between Odebrecht S.A. (Odebrecht), a Brazilian Aviles factual proffer provides that the Insuranceconstruction conglomerate, and Braskem, a Brazilian Broker was retained by Seguros Sucre to be thepetrochemical company, to systematically pay hundreds reinsurance broker for the Ecuadorian Ministry ofof millions of dollars to corrupt government officials Defense (MOD) for the 2013-2014 period. In latein countries on three continents. In 2016, Odebrecht 2013, however, the Insurance Broker was informed thatpleaded guilty to one count of conspiracy to violate the Seguros Sucre might not renew its MOD reinsuranceanti-bribery provisions of the FCPA and agreed to pay policy. The Insurance Broker connected with Aviles,$3.5 billion to resolve charges with authorities in the who then arranged meetings between InsuranceU.S., Brazil, and Switzerland. Broker and Seguros Sucre officials. Thereafter, Seguros 28'