Koch Bros. Fund Iran for Prosperity

(10 am. – promoted by ek hornbeck)

Cross posted from The Stars Hollow Gazette

The billionaire Koch bothers, major GOP donors who founded Americans for Prosperity to fund the tea party movement, have apparently been ignoring US laws (pdf) and making even more money trading with Iran. In an article that appeared in Bloomberg Markets Magazine, the possibly criminal activity of the brothers is exposed:

– Koch Industries used the European offices of their subsidiary Koch-Glitsch to sell millions of dollars of petrochemical equipment to Iran in an apparent violation of the US-Iran trade embargo, as recently as 2007

– Internal documents of Koch Industries prove that the company took elaborate steps to ensure that their US-employees weren’t involved in the sales to Iran

– While is not 100% certain at this point that Koch Industries did in fact violate US law, according to Bloomberg Markets Magazine, internal memos show for example that the details of the sales with Iran were meticulously checked by US lawyers of Koch Industries and coordinated with the lawyers in order to fully ensure that no visible involvement of US-citizens took place

– Koch Industries paid bribes in six countries from 2002 to 2008 to win business in Africa, India and the Middle East, comparable to similar behaviour of German technology giant Siemens (Siemens subsequently had to pay a $ 1.6 billion fine!)

Koch Industries sacked a compliance officer in France in June 2009 who discovered the illegal bribes at Koch Industries subsidiary Koch-Glitsch

These revelations were made possible through newly discovered documents from two labour court cases in France

– Bloomberg Markets reveals that former employees of Koch Industries harshly criticize the company for their internal practises and ethics

– The story also covers in great detail over several pages earlier violations of Koch Industries: The company in the past “rigged prices with competitors, lied to regulators and repeatedly run afoul of environmental regulations, resulting in five criminal convictions since 1999 in the U.S. and Canada”

Koch Brothers Flout Law Getting Richer With Secret Iran Sales

In May 2008, a unit of Koch Industries Inc., one of the world’s largest privately held companies, sent Ludmila Egorova-Farines, its newly hired compliance officer and ethics manager, to investigate the management of a subsidiary in Arles in southern France. In less than a week, she discovered that the company had paid bribes to win contracts.

“I uncovered the practices within a few days,” Egorova- Farines says. “They were not hidden at all.”

She immediately notified her supervisors in the U.S. A week later, Wichita, Kansas-based Koch Industries dispatched an investigative team to look into her findings, Bloomberg Markets magazine reports in its November issue.

By September of that year, the researchers had found evidence of improper payments to secure contracts in six countries dating back to 2002, authorized by the business director of the company’s Koch-Glitsch affiliate in France.

“Those activities constitute violations of criminal law,” Koch Industries wrote in a Dec. 8, 2008, letter giving details of its findings. The letter was made public in a civil court ruling in France in September 2010; the document has never before been reported by the media.

Egorova-Farines wasn’t rewarded for bringing the illicit payments to the company’s attention. Her superiors removed her from the inquiry in August 2008 and fired her in June 2009, calling her incompetent, even after Koch’s investigators substantiated her findings. She sued Koch-Glitsch in France for wrongful termination.

Hello? Eric Holder?

h/t to David Waldman from a Tweet at Twitter which led down the rabbit hole.

1 comments

    • TMC on October 6, 2011 at 04:55
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