DOJ Alleges Elaborate Web of Fraud and Concealment
Federal prosecutors say the executives used coded language, phony contracts, and sham loan agreements to disguise illicit payments routed through financial institutions spanning Asia, Europe, and the U.S., including banks in the Southern District of Florida.
“The bribes were paid to obtain and retain business from COMELEC, including the release of favorable value-added tax reimbursements and other contractual payments for the benefit of Smartmatic and its affiliates,” the Department of Justice said in a statement.
The indictment claims that the company inflated equipment costs — overcharging for voting machines used in the 2016 elections — to bankroll a secret fund used to bribe officials.
Political Overtones and Trump’s FCPA Freeze
The new indictment lands amid political turbulence, following President Donald Trump’s suspension of FCPA enforcement earlier this year, claiming the law handicaps U.S. competitiveness abroad. Trump’s executive order instructed Attorney General Pam Bondi to overhaul FCPA guidelines — a move Piñate and Vasquez previously cited in their bid to delay proceedings.
The Justice Department, however, pressed ahead, expanding its case to include Smartmatic itself.
