Virginia Firm Pleads Guilty to Paying Illegal Kickbacks Under U.N. Oil-for-Food Program.
Manhattan District Attorney Robert M. Morgenthau today announced that Midway Trading (Midway), a Reston, Virginia-based oil trading company, pleaded guilty to first-degree grand larceny for its involvement in a scheme to pay kickbacks to Iraq in connection with oil purchases made under the United Nations Oil-for-Food Program (OFP). Under the plea agreement, Midway will pay a fine of $250,000.
The indictment alleged that Midway and Bulf Oil, a Romanian company, paid more than $440,000 in kickbacks to Iraqi officials in connection with oil purchases, but falsely represented to the U.N. that no kickbacks were paid. Details concerning Midway's transactions can be found in the Manhattan D.A. Office's press release at www.manhattanda.org/whatsnew/press/2005-10-20.htm.
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