Business Crimes Hotline

A Guinean-born United States citizen, Thiam arrived in the United States at the age of seven after his father, a banker, was tortured and killed by Guinea's dictator. After spending 14 years as an investment banker in New York, Thiam returned to Guinea to serve as the Minister of Mines from 2009 to 2010. The Department of Justice (DOJ) alleged that during his time as minister, Thiam accepted payments from China Sonagol and CIF in exchange for using his influence to secure valuable mining rights in Guinea for the two conglomerates.

At trial, prosecutors revealed that Thiam influenced the Guinean government to enter into several lucrative mining agreements with China Sonagol, CIF, and their subsidiaries. Specifically, China Sonagol and CIF sought to gain considerable rights and interests in Guinea's natural rock and mineral resources. Thiam testified that he approved a shareholder agreement with China Sonagol and CIF that gave them an 85% stake in certain Guinean mining projects. He further admitted that he received payments from CIF executive Sam Pa, but claimed the payments were loans to help support his family while he was serving as minister in Guinea.

Moreover, at trial, jurors heard testimony describing how China Sonagol and CIF wired the payments to Thiam and how he laundered them into the United States. China Sonagol and CIF first transferred $8.5 million into Thiam's personal bank account in Hong Kong. Thiam then transferred $3.9 million to the United States and used the proceeds to maintain a lavish lifestyle. According to the DOJ, Thiam used the proceeds to cover tuition at expensive private schools for his children, and to purchase a multi-million dollar estate in New York, jewelry, ski lessons, and a Steinway grand piano. To conceal his wrongdoings, Thiam falsely claimed to United States and Guinean banks that he received this money as income from his employment as a consultant prior to serving as minister.

During the trial, he admitted that he repeatedly misrepresented the source of the payments to the banks and the Internal Revenue Service, but maintained that he lied to
protect himself as a “politically exposed person” affiliated with the Guinean government. He further admitted that there was no written agreement, due date or interest for the payments, and that he never repaid Pa, the CIF executive.

Acting U.S. Attorney Joon Kim for the Southern District of New York remarked that “Thiam abused his official government position to enrich himself at the expense of one of Africa's poorest countries.” His sentencing is scheduled for Aug. 11 in the U.S. District Court for the Southern District of New York. Under federal sentencing guidelines, he faces up to 10 years in prison.

Thiam's conviction reveals the DOJ's continued resolve to hold public officials accountable for their illegal actions. As William Sweeney, Jr., Federal Bureau of Investigation Assistant Director in Charge of the New York Division, stated, “[his] conviction demonstrates that no one who violates public office is above the law when they are involved in corruption.”

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Business Crimes Hotline was written by Monique Agnes O. Ladeji , a summer associate at Mayer Brown, Washington, DC.

NEW YORK

Former Guinean Minister of Mines Convicted of Money Laundering and Bribery

On May 3, 2017, after approximately five hours of deliberation, a jury in New York convicted the former Minister of Mines and Geology of the Republic of Guinea, Mahmoud Thiam, on one count of transacting in criminally derived property and one count of money laundering in the amount of $8.5 million. The charges alleged that he received bribes from executives of China Sonagol International Ltd. (China Sonagol) and China International Fund, SA (CIF) in violation of Guinean bribery laws, and that he subsequently laundered the money into the United States.

A Guinean-born United States citizen, Thiam arrived in the United States at the age of seven after his father, a banker, was tortured and killed by Guinea's dictator. After spending 14 years as an investment banker in New York, Thiam returned to Guinea to serve as the Minister of Mines from 2009 to 2010. The Department of Justice (DOJ) alleged that during his time as minister, Thiam accepted payments from China Sonagol and CIF in exchange for using his influence to secure valuable mining rights in Guinea for the two conglomerates.

At trial, prosecutors revealed that Thiam influenced the Guinean government to enter into several lucrative mining agreements with China Sonagol, CIF, and their subsidiaries. Specifically, China Sonagol and CIF sought to gain considerable rights and interests in Guinea's natural rock and mineral resources. Thiam testified that he approved a shareholder agreement with China Sonagol and CIF that gave them an 85% stake in certain Guinean mining projects. He further admitted that he received payments from CIF executive Sam Pa, but claimed the payments were loans to help support his family while he was serving as minister in Guinea.

Moreover, at trial, jurors heard testimony describing how China Sonagol and CIF wired the payments to Thiam and how he laundered them into the United States. China Sonagol and CIF first transferred $8.5 million into Thiam's personal bank account in Hong Kong. Thiam then transferred $3.9 million to the United States and used the proceeds to maintain a lavish lifestyle. According to the DOJ, Thiam used the proceeds to cover tuition at expensive private schools for his children, and to purchase a multi-million dollar estate in New York, jewelry, ski lessons, and a Steinway grand piano. To conceal his wrongdoings, Thiam falsely claimed to United States and Guinean banks that he received this money as income from his employment as a consultant prior to serving as minister.

During the trial, he admitted that he repeatedly misrepresented the source of the payments to the banks and the Internal Revenue Service, but maintained that he lied to
protect himself as a “politically exposed person” affiliated with the Guinean government. He further admitted that there was no written agreement, due date or interest for the payments, and that he never repaid Pa, the CIF executive.

Acting U.S. Attorney Joon Kim for the Southern District of New York remarked that “Thiam abused his official government position to enrich himself at the expense of one of Africa's poorest countries.” His sentencing is scheduled for Aug. 11 in the U.S. District Court for the Southern District of New York. Under federal sentencing guidelines, he faces up to 10 years in prison.

Thiam's conviction reveals the DOJ's continued resolve to hold public officials accountable for their illegal actions. As William Sweeney, Jr., Federal Bureau of Investigation Assistant Director in Charge of the New York Division, stated, “[his] conviction demonstrates that no one who violates public office is above the law when they are involved in corruption.”

*****
Business Crimes Hotline was written by Monique Agnes O. Ladeji , a summer associate at Mayer Brown, Washington, DC.