U.S. Justice Department launches probe of Alcoa
|
|
|
By Ilaina JonasNEW YORK (Reuters) - The U.S. Department of Justice has launched a criminal investigation into whether Alcoa Inc , one of its subsidiaries and people connected with the unit committed fraud, corruption and bribery in its relations with customer Aluminum Bahrain B.S.C. (Alba).In a motion filed Thursday with the U.S. District Court in Pittsburgh, the Justice Department asked the court to put a temporary hold on a Alba's civil suit against Alcoa, the world's largest supplier of alumina, the principal raw material used in making aluminum.The suit also names affiliate Alcoa World Alumina LLC, former Alcoa World Alumina Vice President of Marketing William Rice and Victor Dahdaleh, an agent of Alcoa and Alcoa World Alumina, as defendants."The Alba complaint alleges numerous facts which, if true, could be relevant to the government's criminal investigation and a potential criminal trial," the department wrote in its motion.Last month, Alba, one of the worlds largest smelting firms, filed suit seeking more than $1 billion from Alcoa, accusing the firm of participating in a 15-year conspiracy involving overcharging, fraud and bribery.In the suit, Alba accused the defendants of steering payments for alumina to companies abroad in order to pay kickbacks to a Bahraini government official.Alba, which is 77 percent owned by the government of Bahrain, also accuses the defendants of overcharging it for alumina. It did not name the official to whom bribes were allegedly paid.According to the suit, the bribes were sent through a series of shell companies controlled by Alcoa and resulted in hundreds of millions of dollars in overpayments.Alcoa supplied the alumina from its Australian unit to a Singapore-based company controlled by Dahdaleh, a Canadian citizen who lives in Britain and who, according to the lawsuit, facilitated the bribes that caused Alba to overpay for the material starting in 1993.Rice is an Alcoa employee, Dahdaleh is not, Alcoa spokesman Kevin Lowery said.Alcoa first learned of the Department of Justice's investigation when the department notified Alcoa that it would ask for the stay a couple of days ago."We did not object, and we also told them we would be cooperating fully, partly because we see this as opportunity to get speedy resolution to the entire matter," Lowery said."We have continued to look into the matter and have yet to find that Alcoa hasn't lived up to its values," Lowery said.Dahdaleh is overseas and has not been served with the complaint, according to the motion.(Reporting by Ilaina Jonas; Editing by Christian Wiessner)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
US economists: 'Jobless' recovery to reach bottom at start of 2010
Washington - The US economy will start adding jobs some time in the first quarter of 2010, ending a so-called jobless recovery that has plagued the world's largest economy since the summer months, according to a survey released Monday. But the Nati...
Hershey, Nestle, sweeten war for Cadbury
Washington - Hershey and Nestle are expected to jump into the war over Cadbury sweets, media reports said Saturday, just weeks after the British-based stalwart rejected a hostile bid by US Kraft Inc. The growing market for chocolate in the developing...
US stock drop slightly on Dell profits, mixed for week
New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
GM: Opel restructuring plan by mid-December; cuts up to 25 per cent
Washington - US carmaker General Motors will present a new restructuring plan for its European operations by mid-December, Nick Reilly, the new head of GM Europe, wrote on his new blog Friday. While the details were still being hashed out, Reilly war...
US stock sell-off on fears of weak recovery
New York - US stocks followed global markets in a broad decline amid investor fears over the world's uneasy recovery from recession. Major US stock indices fell about 1 per cent on average, following hefty declines in the DJ Euro Stoxx 50 and Japan's...
US leading economic indicator gains 0.3 per cent
Washington - A key measure of US economic performance gained in October, according to a private research group Thursday, signalling that a broader recovery may be taking hold. The New York-based Conference Board's Leading Economic Index added 0.3 per...
US stocks fall slightly on technology earnings
New York - US stocks posted modest losses Wednesday on poor profit forecasts from technology firms and a surprising dip in home construction. Earnings from Salesforce.com and Autodesk were worse than expected. Other technology shares losing ground in...
|
|
|
|
|
|
|
|
