U.S. Citizen Pleads Guilty in
Oil-For-Food Scam
Reuters.com
By Deborah Charles
Tue Jan 18, 2005 04:47 PM ET
WASHINGTON (Reuters) - An Iraqi-American illegally acted as an
agent for Iraq under Saddam Hussein and received millions of
dollars worth of oil from the country's U.N. oil-for-food
program, U.S. court documents showed on Tuesday.
Samir Vincent, 64, a naturalized American citizen, pleaded
guilty to four charges as part of a plea deal with the
government, which is investigating whether U.S. laws were
violated in the $64 billion oil-for-food program.
According to documents filed in the U.S. District Court in New
York, Vincent pleaded guilty to conspiring and acting as an
unregistered agent of a foreign government, violating economic
sanctions and income tax fraud violations.
Vincent, who surrendered to the FBI on Tuesday morning in New
York, faces a maximum of 28 years in prison, which could be
reduced for cooperation. He also agreed to cooperate with the
investigation by the U.S. Justice Department into corruption in
the oil-for-food program.
Under the program, which began in December 1996 and ended in
November 2003, the former Iraqi president's government was
allowed to sell oil to buy civilian goods to ease the impact of
U.N. sanctions on ordinary Iraqis.
The plea agreement represented the first case brought as part
of the U.S. government's investigation into the scandal.
"Between 1996 and 2003, Vincent has admitted to receiving
allocations for more than 9 million barrels of oil, the rights to
which he sold for millions of dollars," U.S. Attorney General
John Ashcroft said in announcing the plea deal.
U.S. Attorney David Kelley said Vincent reaped between $3
million and $5 million from the allocation of the oil and from
payments from the Iraqi government.
ACTED ON BEHALF OF IRAQ
Vincent admitted his ties to Saddam's regime began before the
oil-for-food program was launched.
"For a number of years, I acted on behalf of the government of
Iraq in seeking to open a dialogue with the United States and the
United Nations with the ultimate goal of lifting the sanctions
against Iraq," Vincent said when he appeared before U.S. District
Judge Denny Chin in New York.
A sentencing hearing was tentatively set for late
March.
Ashcroft called Vincent one of the "accomplices" in corrupting
the oil-for-food program.
"Under the oil-for-food program, officials at the highest
levels of the Iraqi regime had the power to select the companies
and individuals who received the rights to purchase Iraqi oil,"
Ashcroft said.
"These companies and individuals, many of whom were not
otherwise involved in the oil industry, made large profits by
selling their allocations of Iraqi oil to brokers or companies
capable of transporting the oil to a refinery," he added.
Since the overthrow of the Saddam government, Iraq has
released lists of oil vouchers and kickbacks by the previous
government. The lists detail legitimate contracts to oil
companies but they are also a veritable who's who of political
groups and individuals from whom the former Iraqi government
wanted to buy influence while under U.N. sanctions.
Charles Duelfer, a former U.N. arms inspector who did a
detailed survey last fall, said Saddam earned $1.5 billion
through kickbacks from contracts for goods purchased through the
oil-for-food program and $229,000 from surcharges on oil sold
under the program.
Duelfer estimated Iraq also sold $8 billion in oil outside
of the program: $4.4 billion in trade with Jordan, $2.8 billion
with Syria and $710 million with Turkey, which was known to U.N.
Security Council members, including the United States.
(Additional reporting by James Vicini, Gail Appleson and the
United Nations bureau)
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