A former senior oil and gas trader was sentenced to 15 months in prison and fined $300,000 after a lengthy scheme to bribe Petrobras officials and launder payments to win fuel contracts for Arcadia Fuels Ltd. and Freepoint Commodities LLC.
The sentence caps a case that prosecutors say spanned nearly eight years and involved secret payments, coded language and international cooperation. The trader at the center of the case is Glenn Oztemel, 66, of Westport, Connecticut. He was convicted in September 2024 on multiple counts tied to foreign bribery and money laundering.
Court evidence and trial testimony described how Oztemel paid more than $1 million to secure inside information from Petróleo Brasileiro S.A., commonly known as Petrobras. That information allegedly included competitor bids and confidential pricing data that gave Arcadia and Freepoint an advantage when bidding on lucrative fuel oil contracts. Prosecutors say the payments were routed through intermediaries and disguised as consulting fees and commissions.
The conduit for those payments was an intermediary and agent named Eduardo Innecco, who, according to charges, passed funds on to Brazilian officials and a Houston-based Petrobras trader, Rodrigo Berkowitz. To mask their activities, participants used coded phrases like “breakfast” and “freight deviation” and communicated over personal email, encrypted messaging apps and disposable phones. They also reportedly used fabricated identities such as “Spencer Kazisnaf” and “Nikita Maksimov” to hide who was actually involved.
Beyond Oztemel’s individual sentence, the case has broader corporate consequences. In a related matter, Freepoint acknowledged in December 2023 that it had engaged in bribery in Brazil and entered a deferred prosecution agreement. As part of that resolution, Freepoint agreed to pay more than $98 million in criminal penalties and forfeiture, according to court filings and announcements from prosecutors.
Prosecutors in the District of Connecticut and officials from the Justice Department’s Criminal Division handled the case, with the FBI’s Los Angeles Field Office running the investigation domestically. Acting Assistant Attorney General Matthew R. Galeotti, U.S. Attorney David X. Sullivan and Assistant Director in Charge Akil Davis were named in the public announcements. Authorities in Brazil, Latvia, Switzerland and Uruguay also assisted with the investigation.
The legal charges brought against Oztemel included conspiracy to violate the Foreign Corrupt Practices Act, conspiracy to commit money laundering, multiple counts under the FCPA and several counts of money laundering. Those convictions were rendered by a jury in September 2024 after prosecutors presented financial records, communications and witness testimony. Sentencing then followed, with the judge imposing 15 months behind bars and a $300,000 fine.
Trial attorneys from the Criminal Division’s Fraud Section worked alongside Assistant U.S. attorneys for the District of Connecticut to bring the case. The prosecutors named in filings include Allison McGuire, Clayton P. Solomon and Michael McGarry. Prosecutors emphasized the international scope of the scheme and the role of intermediaries and deceptive bookkeeping in concealing illicit payments.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting violations of the FCPA and related laws, including the Foreign Extortion Prevention Act. Those units pursue cases where U.S. persons or companies allegedly bribe foreign officials to win business or gain a market edge. Enforcement often involves coordination with foreign partners and with U.S. law enforcement agencies, reflecting the cross-border nature of modern commodities trading.
This prosecution underscores the scrutiny that traders and firms face when operating in international energy markets. Prosecutors argued that securing confidential bid and pricing information through bribery distorts fair competition and harms both markets and public institutions. Defendants in such cases typically face criminal exposure and significant corporate settlements when investigations uncover systemic violations.
Defense teams in these matters often focus on intent, the chain of custody for records and whether payments were knowingly directed to corrupt officials. In this case, the government portrayed a deliberate, multi-layered plan to conceal illicit payments and to use trusted intermediaries to funnel money to decision makers at Petrobras. The sentencing reflects the court’s assessment of those facts and the penalties statutorily available for FCPA and money-laundering convictions.
Beyond the immediate penalties, the case is likely to influence compliance priorities across energy trading firms and intermediaries. Companies operating in countries with high corruption risks face pressure to enhance controls, monitor third-party agents and ensure transparency in contracting. The outcome here serves as a reminder that both individuals and corporations can face steep consequences when bribery and concealment are part of a bid to win business.
