United States To Transfer $52.88m In Forfeited Corruption Proceeds To Nigeria

The Justice Department announced Friday that the United States entered into an agreement to transfer approximately $52.88 million in forfeited assets to the Federal Republic of Nigeria in recognition of Nigeria’s assistance to the department in an investigation into corruption in the Nigerian oil industry.

“This agreement recognizes the close law enforcement relationship between the United States and Nigeria and Nigeria’s vital assistance that contributed to the successful forfeiture of millions of dollars of corruption proceeds,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division.

“Our strong coordination with international partners to trace and recover assets leaves corrupt actors few places to hide their ill-gotten gains. Today’s agreement to return nearly $53 million in forfeited funds to support Nigeria and its people through electrification projects and cross-border efforts to combat terrorism demonstrates forfeiture’s power as a tool to help remediate the harms of corruption and to invest in our global fight against terrorism.”

“The FBI remains steadfast in its commitment to the global fight against corruption,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “By ensuring these forfeited funds are repatriated to Nigeria to benefit the Nigerian people through critical projects and counterterrorism efforts, the FBI reaffirms our dedication to promoting transparency and dismantling the systems that enable corruption to thrive.”

“The repatriation of these funds to Nigeria to benefit the citizens of Nigeria is one of the primary goals of the Kleptocracy Asset Recovery Initiative,” said Chief Guy Ficco of IRS Criminal Investigation (IRS-CI). “IRS-CI is proud to partner with the global law enforcement community in this initiative to restore these vital resources to the projects and programs that promote Nigeria’s continued prosperity.”

These assets were forfeited as part of an investigation by the Kleptocracy Asset Recovery Initiative of the International Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), a dedicated team that seeks to forfeit the proceeds of foreign official corruption and, where appropriate, repatriate those assets to the countries harmed by corruption for the benefit of their people.

According to court documents, from 2011 to 2015, Nigerian businessmen Kolawole Akanni Aluko and Olajide Omokore conspired with others to pay bribes to Nigeria’s former Minister for Petroleum Resources, Diezani Alison-Madueke. In return, Alison-Madueke used her influence to steer lucrative oil contracts to companies owned by Aluko and Omokore.

Proceeds from the scheme of more than $100 million were then laundered into and through the United States and used to purchase various assets, including luxury real estate in California and New York as well as the Galactica Star, a 65-meter superyacht.

The real estate was also used as collateral for loans to Aluko and shell companies he controlled.

As part of the forfeiture process, those lien holders were paid. The assets were forfeited as a result of corruption, bribery, money laundering, and other illegal acts in violation of Nigerian and U.S. law.

The Federal Repubic of Nigeria provided crucial assistance to the United States leading to the forfeitures, including providing extensive evidentiary and investigative support.

The agreement was signed in Abuja, Nigeria, on Friday by Attorney General of the Federation and Minister of Justice of Nigeria Lateef O. Fagbemi, SAN, and U.S. Ambassador to Nigeria Richard M. Mills Jr.

Under the agreement, $50 million of the recovered funds will be dedicated to an expansion of the Distributed Access Through Renewable Energy Scale-Up project, an existing electrification project funded, in part, by the International Development Association and implemented by the Nigerian Rural Electrification Agency.

This program is intended to increase access to electricity services in Nigeria with renewable energy generation.

Approximately $2.88 million of the forfeited funds will be used towards Nigeria’s contribution to the International Institute for Justice and the Rule of Law (IIJ) and used to support capacity-building for criminal justice sector practitioners and relevant stakeholders in the region, including through activities focused on countering the financing of terrorism, development and implementation of the Counter-Terrorism Academic Curriculum of the IIJ, and institutional support for the IIJ particularly in the North, West, and East Africa regions.

The agreement contains key measures designed to promote transparency and accountability. Under the agreement, the $50 million dedicated to electrification programs will be managed and disbursed through a World Bank trust fund, subject to World Bank oversight controls, auditing, and publication requirements.

Similarly, the IIJ counterterrorism and rule of law programs will be subject to external auditing, periodic progress reporting, and public reporting.

These forfeiture actions were prosecuted by MLARS’ International Unit.

The FBI and IRS-CI investigated the case. The Justice Department’s Office of International Affairs provided critical assistance.

The Criminal Division, through MLARS’ International Unit, administers the Justice Department’s international asset forfeiture sharing program. Pursuant to federal law, and in coordination with the Departments of the Treasury and State, the Attorney General may share proceeds of successful forfeiture of property with foreign countries that participate in the seizure or forfeiture of the property.