Apr. 15 - David Bay Chalmers Jr. of Bayoil U.S.A. was charged yesterday in Iraq Oil Sales by Hussein Aides.:

In an indictment, federal authorities in New York said David Bay Chalmers Jr., a Houston oil businessman, and his company, Bayoil U.S.A., made millions of dollars in illegal kickbacks to the Iraqi government while trading oil under the $65 billion aid program.

Separate charges were brought against Tongsun Park, a millionaire South Korean businessman, for acting as an unregistered lobbyist for Iraq in behind-the-scenes negotiations in the United States to set up and shape the United Nations program. The criminal complaint said Mr. Park received at least $2 million in secret payments from Mr. Hussein's government for serving as a liaison between Iraqi and United Nations officials.

Mr. Park was at the center of a lobbying scandal in the 1970's, when he was accused of paying bribes to lawmakers in Washington to secure support for loans to South Korea.

[...]

The authorities not only charged that Bayoil made illegal payments to secure Iraqi oil, but also that it conspired to artificially lower the price Iraq received, depriving the Iraqi people of money for sorely needed items. The charges also disclosed new information about an alleged plan to pay senior United Nations officials to influence the course of the program.

Catherine M. Recker, a lawyer for Mr. Chalmers, said the Bayoil defendants and the company would plead not guilty and "vigorously dispute" the criminal charges.

According to federal authorities and the complaint against Mr. Park, he was a partner in the lobbying effort with Samir Vincent, an Iraqi-American businessman who pleaded guilty in January to illegal lobbying for Iraq.

Mr. Vincent, who is cooperating with federal investigators, said Iraqi officials signed agreements in 1996 to pay him and Mr. Park $15 million for their lobbying, the complaint says.

One of their tasks was "to take care of" a high-ranking United Nations official, which Mr. Vincent understood to mean to pay bribes, the complaint says. The authorities did not identify or bring charges against the United Nations official. (Emphasis added)

[...]

David N. Kelley, the United States attorney for the Southern District of New York, in Manhattan, said the complaint alleges that Mr. Park intended to bribe the official, but does not show that the official received any bribe.

The complaint also charges that Mr. Park met with a second unnamed senior United Nations official, once in a restaurant in Manhattan. After that, Mr. Park said he invested $1 million he had been paid by Iraq in a Canadian company belonging to the son of the second United Nations official, the complaint says.

Mr. Kelley declined to say whether the officials were still actively serving at the world organization. He said, however, that the investigation was "broad and large" and that his office would "wring the towel dry" in pursuing United Nations officials. (Emphasis added.)

A federal grand jury in Manhattan charged that David B. Chalmers Jr., founder of Houston-based Bayoil USA Inc. and Bayoil Supply & Trading Limited; Ludmil Dionissiev, a Bulgarian citizen who lives in Houston; and John Irving, a British oil trader, funneled millions of dollars in kickbacks through a foreign front company to an Iraqi-controlled bank account in the United Arab Emirates. If convicted, the three men could each be sentenced to as long as 62 years in prison, $1 million in fines, and the seizure of at least $100 million in personal and corporate assets.

The federal complaint against Park charges that he received a total of $2 million in cash from Iraq, including a fee to "take care" of an unnamed U.N. official. It also states that Park invested $1 million in Iraqi money in a Canadian company owned by the son of another unknown, "high-ranking" U.N. official. Park could face as long as five years in prison and a fine of as much as $250,000 or twice the value of profits he earned as a result of his alleged activities. (Emphasis added.)

The Telegraph (UK) has a fairly terse article on the arrests.

Thus far I've only found coverage of the arrests in The Globe and Mail which covers the arrest but as of 5:41 a.m. didn't report the allegations of a Canadian connection but does report that U.N. officials may be connected to these arrests:

The reference in the complaint against Mr. Park to two mystery high-ranking UN officials sparked widespread speculation in UN corridors of possible names.

Mr. Kelley, pressed repeatedly by reporters at a news conference to say whether U.N. officials had actually received money tied to Mr. Park, would say only that that issue was not part of the indictment.

The U.N. is claiming that the Americans and British were perfectly aware of the violations of the sanctions but refused to order their ships in the Persian Gulf to stop oil tankers heading for Turkish and Jordanian ports with illicit Iraqi oil. I have read reports that trucks loaded with illegally purchased oil from Iraq went to Turkey and Jordan (that became common knowledge after Operation Iraqi Freedom and the public learned just how corrupt OFF - or Oil for Palaces - really was) but I don't understand why oil headed for Jordan or Turkey would use rather lengthy sea lanes when they border Iraq and could drive it in.

Maybe Annan was thinking of Syria, a member of the U.N. Security Council, but, again, the oil was not transported by sea but by pipeline, two of which were turned off when U.S. troops got to them. Maybe he just forgot.

11:30 - Glenn Reynolds has lots of links on the arrests.

Apr. 16 - 10:05: FoxNews has no additional information on U.N. Official No. 1 and Official No. 2.

Posted by: Debbye at 10:19 AM | Comments (8) | Add Comment
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