Former Coal Company Executive Convicted in International Bribery and Money Laundering Scheme

WASHINGTON - A federal jury convicted a former vice president of Corsa Coal Corporation (Corsa) for his role in a multi-year scheme to bribe Egyptian government officials in connection with nearly $140 million in coal supply contracts.

"Charles Hunter Hobson won business for his company by paying bribes - and he even took a cut for himself," said Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division. "Businessmen and companies that pay bribes to foreign government officials to win contracts undermine the rule of law and distort competition, which hurts American business interests worldwide. The Criminal Division will continue its commitment to vindicating our national interests by combatting foreign corruption in violation of U.S. law."

"Bribing officials of foreign governments to obtain business, and then laundering that money, is illegal, corrupts the global marketplace, and disadvantages law-abiding U.S. companies," said U.S. Attorney Troy Rivetti for the Western District of Pennsylvania. "Along with our law enforcement colleagues at the FBI and other agencies, we will continue to investigate and bring to justice defendants such as Charles Hobson who seek to enrich themselves while engaging in flagrant, fraudulent conduct."

"Hobson used his leadership position at Corsa to bribe Egyptian government officials and secure millions of dollars in sales contracts for the company," said Assistant Director in Charge Darren Cox of the FBI Washington Field Office. "Through this bribery scheme, he violated American and Egyptian laws and robbed law-abiding coal companies of the chance to compete for profits. His conviction is the latest result of the FBI's work to investigate individuals who resort to corrupt practices to increase international business."

According to court documents and evidence presented at trial, Charles Hunter Hobson, 50, of Knoxville, Tennessee, agreed to bribe Egyptian government officials to obtain and retain business with Al Nasr Company for Coke and Chemicals (Al Nasr), which was then a state-owned and state-controlled chemical manufacturing company in Egypt. Hobson, together with others, paid the bribes through purported sales commissions and laundered the bribes through bank accounts in the United States and the United Arab Emirates. Hobson also secretly received kickback payments as part of the scheme.

The evidence at trial showed that, between 2016 and 2020, Hobson, who was then a vice president at Corsa responsible for international sales, conspired to and did pay bribes to Egyptian government officials - whom Hobson referred to as "the Team" - in order to win contracts for Corsa to sell coal products to Al Nasr. The bribes were paid through an intermediary in Egypt, who, received more than $4.8 million in purported sales commissions. In addition to using the corrupt commissions to pay bribes, the intermediary paid Hobson over $200,000 in kickbacks from the scheme.

The jury convicted Hobson of one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), two counts of violating the FCPA, one count of conspiracy to commit money laundering, two counts of money laundering, and one count of conspiracy to commit wire fraud. He faces a maximum penalty of five years in prison on each of the FCPA and FCPA conspiracy counts, and a maximum penalty of 20 years in prison on the money laundering conspiracy, money laundering and wire fraud conspiracy counts, respectively. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Frederick Cushmore, Jr., another Corsa executive, previously pleaded guilty for his role in the scheme and is awaiting sentencing. The department resolved its investigation into Corsa in March 2023 through a declination and the disgorgement of profits as defined in Part I of the Criminal Division's Corporate Enforcement and Voluntary Self-Disclosure Policy.

The FBI's International Corruption Unit in Washington, D.C., and the Washington Field Office investigated the case.

Trial Attorneys Natalie Kanerva and Ligia Markman of the Criminal Division's Fraud Section and Assistant U.S. Attorney Nicole Stockey for the Western District of Pennsylvania are prosecuting the case.

The Criminal Division's Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department's FCPA and FEPA enforcement efforts can be found at https://www.justice.gov/criminal/fraud/fcpa.