Ex-Vitol energy trader pleads guilty to international bribery scheme

Energy trader bought his way into profits with dirty money

August 23, 2024 Robert Abruzzese, Courthouse Editor

Brooklyn Federal Courthouse, where former Vitol energy trader Javier Aguilar pleaded guilty to charges related to an international bribery scheme involving Mexican and Ecuadorian officials. Brooklyn Eagle photo by Mike Plotz

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Javier Aguilar, a former energy trader for Vitol Inc., pleaded guilty in federal court on Wednesday to his involvement in a bribery scheme that facilitated the payment of hundreds of thousands of dollars to officials in Mexico and Ecuador.

The guilty plea, entered in Brooklyn, details Aguilar’s role in securing contracts for Vitol by paying bribes to officials at PEMEX Procurement International (PPI), a subsidiary of Mexico’s state-owned oil company, PEMEX.

According to court documents, Aguilar worked in Vitol’s Houston office from 2015 to 2020, during which time he and his co-conspirators paid approximately $600,000 in bribes. These payments were made to secure contracts for Vitol, allowing the company to supply liquid ethane to PEMEX.

The scheme involved the use of fake contracts, sham invoices and shell companies in Curaçao and Mexico to conceal the bribes. Aguilar and others also communicated through alias email accounts and used code words like “shoes” and “coffee” to refer to the payments.

“With today’s guilty plea, the defendant admits his role in the widespread corruption of the international commodities market and to casting aside laws and rules that apply to all to unfairly line the pockets of the few,” U.S. Attorney Breon Peace said. “The actions of the defendant and his co-conspirators, and of those who act similarly, destroy people’s faith in their governments, disadvantage those who play by the rules, undermine confidence in American businesses worldwide, and will not be tolerated by this office or our law enforcement partners.”

Aguilar’s plea follows Vitol’s 2020 agreement to pay $135 million in penalties after admitting to bribing officials in Ecuador, Mexico and Brazil. As part of his plea agreement, Aguilar will forfeit over $7.1 million and faces a potential sentence of up to 40 years in prison.

This case is one of several prosecutions targeting corruption in the global energy market. Seven of Aguilar’s co-conspirators have also pleaded guilty and are awaiting sentencing, collectively agreeing to forfeit more than $63 million.

Despite the significant financial penalties and potential prison time, some view Aguilar’s punishment as a slap on the wrist, particularly given the vast profits generated through the bribery scheme. With Vitol admitting to paying $135 million in penalties as part of a deferred prosecution agreement and Aguilar forfeiting $7.1 million, the financial consequences represent a small fraction of the company’s global earnings. Additionally, concerns may arise over whether these penalties are enough to deter similar conduct in the future, especially when compared to the scale of the contracts secured through corrupt practices.