The United State’s department of Justice, DOJ, says it has forfeited more than $480 million in corruption proceeds hidden in bank accounts around the world by former Nigerian dictator Sani Abacha, his son, Mohammed Abacha, and other co-conspirators.
Assistant Attorney General, Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office disclosed this after a judgment was entered on Aug. 6, 2014, by U.S. District Judge John D. Bates of the District of Columbia.
The Assistant Attorney General Caldwell in a statement by the DOJ said “Rather than serve his country, General Abacha used his public office in Nigeria to loot millions of dollars, engaging in brazen acts of kleptocracy.”
Caldwell continues, “With this judgment, we have forfeited $480 million in corruption proceeds that can be used for the benefit of the Nigerian people. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice’s Criminal Division denies kleptocrats like Abacha the fruits of their crimes, and protects the U.S. financial system from money laundering. In coordination with our partners in Jersey, France and the United Kingdom, we are helping to end this chapter of corruption and flagrant abuse of office.
“We remain steadfast in protecting the U.S. banking system from becoming a tool for dictators to hide their criminal proceeds,” said Assistant Director in Charge Parlave.
“This court order bolsters the FBI’s ability to combat international corruption and money laundering by seizing the assets of those involved. I want to thank the special agents, financial analysts and prosecutors whose hard work over the years resulted in today’s announcement,” the statement further read.
The forfeited assets comes from the proceeds of corruption during and after the military regime of General Abacha, who assumed power as the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions of dollars from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States.
The judgment is informed by a civil forfeiture complaint the department filed in November 2013 against more than $625 million in the largest kleptocracy forfeiture action brought in the department’s history. The forfeiture judgment includes approximately $303 million in two bank accounts in the Bailiwick of Jersey, $144 million in two bank accounts in France, and three bank accounts in the United Kingdom and Ireland with an expected value of at least $27 million. The ultimate disposition of the funds will follow the execution of the judgment in each of these jurisdictions. Claims to an additional approximately $148 million in four investment portfolios in the United Kingdom are pending.
Allegations in the complaint have it that General Abacha and others systematically embezzled billions of dollars in public funds from the Central Bank of Nigeria on the false pretense that the funds were necessary for national security. The conspirators withdrew the funds in cash and then moved the money overseas through U.S. financial institutions. General Abacha and his finance minister is allegedly believed to have caused the government of Nigeria to purchase Nigerian government bonds at vastly inflated prices from a company controlled by Bagudu and Mohammed Abacha, generating an illegal windfall of more than $282 million.
Furthermore, General Abacha and his associates are believed to have extorted more than $11 million from a French company and its Nigerian affiliate in connection with payments on government contracts. The Funds involved in each of these schemes were allegedly laundered through the United States.