Home Business NewsBusiness Five convictions made in SFO’s Alstom investigation into bribery and corruption

Five convictions made in SFO’s Alstom investigation into bribery and corruption

by LLB Reporter
20th Dec 18 9:44 am

Nicholas Reynolds was found guilty of conspiracy to corrupt today at Blackfriars Crown Court following an extensive investigation and prosecution brought by the Serious Fraud Office.

The conviction brings to four the number of total convictions in relation to this conspiracy to bribe officials in a Lithuanian power station and senior Lithuanian politicians in order to win two contracts worth €240 million. These individuals falsified records to avoid checks in place to prevent bribery and between them, the Alstom companies paid more than €5 million in bribes to secure the contracts.

The conviction of Nicholas Reynolds who is a UK national and former Global Sales Director for Alstom Power Ltd’s Boiler Retrofits unit followed a guilty plea from former Business Development Manager at Alstom Power Ltd John Venskus on 2 October 2017 and former Regional Sales Director at Alstom Power Sweden AB Göran Wikström on 22 June 2018 on the same charge. Alstom Power Ltd entered a guilty plea to one count of conspiracy to corrupt on 10 May 2016.

In sentencing Göran Wikström HHJ Martin Beddoe said:

““This was a very serious example of bribery and corruption that beleaguers the civilised, commercial world and is a cancer upon it”

Venskus was sentenced to 3 years and 6 months imprisonment on 4 May 2018. Wikström was sentenced to 2 years and 7 months imprisonment on 9 July 2018. He was also ordered to pay £40,000 in costs.

Alstom Power Ltd was ordered to pay a total of £18,038,000 which included:

  • A fine of £6,375,000
  • Compensation to the Lithuanian government of £10,963,000
  • Prosecution costs of £700,000

Nicholas Reynolds is due to be sentenced at Blackfriars Crown Court on 21 December 2018.

Lisa Osofsky, Director of the Serious Fraud Office said:

“The culture of corruption evident within the Alstom Group was widespread. Their illicit activities to win lucrative contracts were calculated and sustained, undermining legitimate business and public trust.

“These convictions were a result of a truly global investigation and I thank our case team for their effort and persistence in bringing the individuals and companies involved to justice.”

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