New Jersey Real Estate Broker Pleads Guilty To Role In Foreign Bribery Scheme Involving $800 Million International Real Estate Deal
summary
Joo Hyun Bahn, a New Jersey real estate broker, pled guilty to conspiring to violate and violating the FCPA by attempting to bribe a foreign official with $500,000 to secure an $800 million real estate deal for Landmark 72 in Hanoi, Vietnam, though the bribe was stolen by intermediary Malcolm Harris, leaving Bahn facing up to five years in prison.
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Joo Hyun Bahn pled guilty to one count of conspiracy to violate and one count of violating the Foreign Corrupt Practices Act (FCPA) for orchestrating a scheme to pay $500,000 in bribes to a foreign official to influence the purchase of Vietnam’s Landmark 72 skyscraper by a Middle Eastern sovereign wealth fund. The bribe funds were transferred through intermediary Malcolm Harris, who admitted to stealing the money rather than delivering it, but Bahn’s intent to corruptly influence the transaction still constituted a clear FCPA violation. Bahn faces a maximum of five years in prison per count, with sentencing scheduled for June 29, 2018; Harris was sentenced to 42 months for wire fraud and money laundering, while Bahn’s father, Ban Ki Sang, remains a pending defendant.
narrative
Joo Hyun Bahn, a 39-year-old real estate broker from Tenafly, New Jersey, pled guilty to one count of conspiracy to violate and one count of violating the Foreign Corrupt Practices Act (FCPA) for his role in a scheme to bribe a foreign official to secure an $800 million real estate deal for Landmark 72 in Hanoi, Vietnam, on behalf of his client Keangnam Enterprises. Between February 2014 and May 2015, Bahn and his father, Ban Ki Sang, transferred $500,000 to intermediary Malcolm Harris, believing he would deliver it to an official in a Middle Eastern country who controlled asset acquisitions for its sovereign wealth fund. However, Harris, who later pleaded guilty to wire fraud and monetary transactions in illicit funds, stole the bribe money and never delivered it to the intended recipient. Despite the bribe never reaching the foreign official, U.S. prosecutors successfully argued that Bahn’s intent to corruptly influence the transaction constituted a clear violation of the FCPA. Bahn faces a maximum of five years in prison on each count, with sentencing scheduled for June 29, 2018. Harris was sentenced to 42 months in prison on October 5, 2017, after admitting to the theft. Bahn’s father, Ban Ki Sang, 70, remains a pending defendant in the case and is presumed innocent until proven guilty. The investigation was led by the FBI’s International Corruption Squad and prosecuted by the U.S. Attorney’s Office for the Southern District of New York and the DOJ’s Criminal Division.
Classified fcpa(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
Parties
geoffrey bermanJohn P. Cronanjoo hyun bahnjudge ramosmalcolm harris
Keywords
bahnreal estatenewforeignestate dealrealestateforeign officialschemedeallinkjersey realestate brokerbroker pleadspleads role
Extracted insights
Dollar amounts 3
- $800.00M $800 Million $100M–$1B
- $800.00M $800 million $100M–$1B
- $500K $500,000 $100K–$1M
Entities 5
- person geoffrey berman
- person John P. Cronan
- person joo hyun bahn
- person judge ramos
- person malcolm harris
Triples 15
- Joo Hyun Bahn Pled Guilty To One Count Of Conspiracy To Violate The Foreign Corrupt Practices Act
- Joo Hyun Bahn Pled Guilty To One Count Of Violating The Fcpa
- Joo Hyun Bahn Engaged In A Scheme To Pay Bribes To A Foreign Official In A Country In The Middle East
- Joo Hyun Bahn Agreed To Pay $500,000 Upfront To The Foreign Official
- Joo Hyun Bahn Transferred $500,000 To An Intermediary In New York, Malcolm Harris
- Malcolm Harris Admitted That He Double-Crossed His Codefendants
- Malcolm Harris Stole The $500,000 Bribe
- Joo Hyun Bahn Is Scheduled To Sentence On June 29, 2018
- Geoffrey Berman Said That Joo Hyun Bahn Schemed To Bribe A Foreign Official To Close An $800 Million Real Estate Deal For A Skyscraper In Vietnam
- John P. Cronan Said That Bribery And Corruption Undermine Fair Competition And The Rule Of Law
- Joo Hyun Bahn Sought To Steer An $800 Million Real Estate Deal By Paying Hundreds Of Thousands Of Dollars In Bribes
- The Department Is Committed To Prosecuting Those Like Bahn Who Seek To Corruptly Tilt The Playing Field To Their Advantage
- Joo Hyun Bahn Would Have Earned A Multimillion-Dollar Commission And Much Needed Capital For His Client, Keangnam Enterprises
- Malcolm Harris Pled Guilty To One Count Of Wire Fraud And One Count Of Conducting Monetary Transactions In Illicit Funds
- Judge Ramos Sentenced Harris To 42 Months In Prison
Extracted body text (4,775c)
Press Release New Jersey Real Estate Broker Pleads Guilty To Role In Foreign Bribery Scheme Involving $800 Million International Real Estate Deal Friday, January 5, 2018 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John P. Cronan, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced that JOO HYUN BAHN, a/k/a “Dennis Bahn” (“BAHN”) pled guilty today to one count of conspiracy to violate the Foreign Corrupt Practices Act (“FCPA”) and one count of violating the FCPA. BAHN pled guilty before U.S. District Judge Edgardo Ramos, and is scheduled to sentence BAHN on June 29, 2018. Manhattan U.S. Attorney Geoffrey Berman said: “As he has now admitted, Joo Hyun Bahn schemed to bribe a foreign official to close an $800 million real estate deal for a skyscraper in Vietnam -- a deal that would have earned him a multimillion-dollar commission and much needed capital for his client, Keangnam Enterprises. As Bahn’s conviction demonstrates, federal law enforcement stands ready to root out commercial bribery wherever it is found.” Acting Assistant Attorney General Cronan said: “Bribery and corruption undermine fair competition and the rule of law. The fact that Joo Hyun Bahn’s intended scheme was thwarted by the greed and deception of one of his codefendants does not change the fact that he sought to steer an $800 million real estate deal by paying hundreds of thousands of dollars in bribes. The Department is committed to prosecuting those like Bahn who seek to corruptly tilt the playing field to their advantage.” According to the allegations contained in the Indictment to which BAHN pled guilty, and statements made during the plea and other court proceedings: Between February 2014 and May 2015, BAHN engaged in a scheme to pay bribes to a foreign official in a country in the Middle East in order to facilitate the sale of Landmark 72 in Hanoi, Vietnam, to the Middle Eastern country’s sovereign wealth fund. In particular, BAHN, his father Ban Ki Sang, and others agreed to pay $500,000 upfront to the foreign official, whom BAHN believed made decisions about the acquisition of assets for the Middle Eastern country’s sovereign wealth fund, in order to corruptly influence him to cause the sovereign wealth fund to purchase Landmark 72. In furtherance of the scheme, BAHN and Ban transferred $500,000 to an intermediary in New York, Malcolm Harris, which BAHN believed Harris would pass on to the foreign official. In related proceedings, Harris admitted that he double-crossed his codefendants, and simply stole the $500,000 bribe. * * * BAHN, 39, of Tenafly, New Jersey, pled guilty to one count of conspiracy to violate the FCPA and one count of violating the FCPA, each of which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only as any sentencing of the defendant will be determined by the judge. On June 21, 2017, Harris pled guilty to one count of wire fraud and one count of conducting monetary transactions in illicit funds. On October 5, 2017, Judge Ramos sentenced Harris to 42 months in prison. The case against Ban, 70, of Seoul, South Korea, is still pending. Ban is presumed innocent unless convicted beyond a reasonable doubt in a court of law. Mr. Berman and Mr. Cronan praised the outstanding investigative work of the International Corruption Squad of the Federal Bureau of Investigation’s New York Field Office. Mr. Berman also thanked the Department of Justice’s Office of International Affairs for its ongoing assistance in this investigation. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble and Trial Attorney Dennis R. Kihm of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution. Updated January 5, 2018 Topics Financial Fraud Foreign Corruption Component USAO - New York, Southern Press Release Number: 18-006
OCR text (4,775c · plain-text · 99% conf)
Press Release New Jersey Real Estate Broker Pleads Guilty To Role In Foreign Bribery Scheme Involving $800 Million International Real Estate Deal Friday, January 5, 2018 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John P. Cronan, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced that JOO HYUN BAHN, a/k/a “Dennis Bahn” (“BAHN”) pled guilty today to one count of conspiracy to violate the Foreign Corrupt Practices Act (“FCPA”) and one count of violating the FCPA. BAHN pled guilty before U.S. District Judge Edgardo Ramos, and is scheduled to sentence BAHN on June 29, 2018. Manhattan U.S. Attorney Geoffrey Berman said: “As he has now admitted, Joo Hyun Bahn schemed to bribe a foreign official to close an $800 million real estate deal for a skyscraper in Vietnam -- a deal that would have earned him a multimillion-dollar commission and much needed capital for his client, Keangnam Enterprises. As Bahn’s conviction demonstrates, federal law enforcement stands ready to root out commercial bribery wherever it is found.” Acting Assistant Attorney General Cronan said: “Bribery and corruption undermine fair competition and the rule of law. The fact that Joo Hyun Bahn’s intended scheme was thwarted by the greed and deception of one of his codefendants does not change the fact that he sought to steer an $800 million real estate deal by paying hundreds of thousands of dollars in bribes. The Department is committed to prosecuting those like Bahn who seek to corruptly tilt the playing field to their advantage.” According to the allegations contained in the Indictment to which BAHN pled guilty, and statements made during the plea and other court proceedings: Between February 2014 and May 2015, BAHN engaged in a scheme to pay bribes to a foreign official in a country in the Middle East in order to facilitate the sale of Landmark 72 in Hanoi, Vietnam, to the Middle Eastern country’s sovereign wealth fund. In particular, BAHN, his father Ban Ki Sang, and others agreed to pay $500,000 upfront to the foreign official, whom BAHN believed made decisions about the acquisition of assets for the Middle Eastern country’s sovereign wealth fund, in order to corruptly influence him to cause the sovereign wealth fund to purchase Landmark 72. In furtherance of the scheme, BAHN and Ban transferred $500,000 to an intermediary in New York, Malcolm Harris, which BAHN believed Harris would pass on to the foreign official. In related proceedings, Harris admitted that he double-crossed his codefendants, and simply stole the $500,000 bribe. * * * BAHN, 39, of Tenafly, New Jersey, pled guilty to one count of conspiracy to violate the FCPA and one count of violating the FCPA, each of which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only as any sentencing of the defendant will be determined by the judge. On June 21, 2017, Harris pled guilty to one count of wire fraud and one count of conducting monetary transactions in illicit funds. On October 5, 2017, Judge Ramos sentenced Harris to 42 months in prison. The case against Ban, 70, of Seoul, South Korea, is still pending. Ban is presumed innocent unless convicted beyond a reasonable doubt in a court of law. Mr. Berman and Mr. Cronan praised the outstanding investigative work of the International Corruption Squad of the Federal Bureau of Investigation’s New York Field Office. Mr. Berman also thanked the Department of Justice’s Office of International Affairs for its ongoing assistance in this investigation. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble and Trial Attorney Dennis R. Kihm of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution. Updated January 5, 2018 Topics Financial Fraud Foreign Corruption Component USAO - New York, Southern Press Release Number: 18-006