Kazakhgate
Encyclopedia
Kаzаkhgаtе refers to the scandal surrounding James Giffen
, an American businessman and former advisor of Kazakhstan president Nursultan Nazarbayev
. US prosecutors accused Giffen of bribery paid to Nazarbayev and Nurlan Balgimbayev
, former Prime Minister of Kazakhstan, to secure contracts over the Tengiz oil fields for Western companies in the 1990s.
James Giffen was arrested in 2003 at John F. Kennedy International Airport
in New York while attempting to board a plane to Paris, though in doing so it was later learned he was in no way attempting to flee the country. He had a return ticket and it was a normal planned business trip. He was charged by the US attorney's office of the Southern District of New York with violation of the Foreign Corrupt Practices Act
of 1974 and with money laundering. He was carrying a Kazakhstani diplomatic passport
, though dual citizenship is not allowed by the laws of Kazakhstan. The attorney's office also charged J. Bryan Williams III, a former Mobil
executive, with tax evasion relating to kickbacks from Mobil's business in Kazakhstan.
According to the federal bribery charges, Giffen is accused of creating Swiss bank accounts and transferring $20 million, paying tuition at exclusive boarding schools for family members of Kazakh officials, and buying millions of dollars in jewelry. Giffen's lawyers assert that Giffen was acting with the full knowledge and approval of the US government. Giffen has requested access to classified information at his trial to back up his claims. The government has opposed the revelation of classified information. In August 2010 Giffen pleaded guilty in front of federal court in Manhattan, N.Y. in disclosure of a Swiss bank account on his income tax return. Mercator Corporation which is owned by Giffen pleaded guilty to one count of making an unlawful payment to a senior government official of the Republic of Kazakhstan, in violation of the Foreign Corrupt Practices Act. http://www.justice.gov/opa/pr/2010/August/10-crm-909.html
Mercator faces a maximum fine of the greater of $2 million or twice the gross gain or loss resulting from the offense. Giffen faces a maximum sentence of one year in prison and a fine of up to $25,000.
, James Giffen is referenced by former CIA agent Robert Baer
in his book "See No Evil" as "Mr. Kazakhstan" for his ability to influence oil policy in that country. George Clooney
produced the film "Syriana
" based on this book. Tim Blake Nelson
played the role of Giffen.
James Giffen
James H. Giffen is an American businessman and an authority on American-Soviet trade. He is the founder and chairman of Mercator Corporation. He was the prime accused in the $80 million Kazakhgate bribery scandal, which was at one time the largest US investigation ever into an overseas bribery...
, an American businessman and former advisor of Kazakhstan president Nursultan Nazarbayev
Nursultan Nazarbayev
Nursultan Abishuly Nazarbayev has served as the President of Kazakhstan since the nation received its independence in 1991, after the fall of the Soviet Union...
. US prosecutors accused Giffen of bribery paid to Nazarbayev and Nurlan Balgimbayev
Nurlan Balgimbayev
Nurlan Utebovich Balgimbayev served as the Prime Minister of Kazakhstan from 10 October 1997 to 1 October 1999...
, former Prime Minister of Kazakhstan, to secure contracts over the Tengiz oil fields for Western companies in the 1990s.
James Giffen was arrested in 2003 at John F. Kennedy International Airport
John F. Kennedy International Airport
John F. Kennedy International Airport is an international airport located in the borough of Queens in New York City, about southeast of Lower Manhattan. It is the busiest international air passenger gateway to the United States, handling more international traffic than any other airport in North...
in New York while attempting to board a plane to Paris, though in doing so it was later learned he was in no way attempting to flee the country. He had a return ticket and it was a normal planned business trip. He was charged by the US attorney's office of the Southern District of New York with violation of the Foreign Corrupt Practices Act
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 is a United States federal law known primarily for two of its main provisions, one that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another concerning bribery of foreign officials.- Provisions and scope...
of 1974 and with money laundering. He was carrying a Kazakhstani diplomatic passport
Passport
A passport is a document, issued by a national government, which certifies, for the purpose of international travel, the identity and nationality of its holder. The elements of identity are name, date of birth, sex, and place of birth....
, though dual citizenship is not allowed by the laws of Kazakhstan. The attorney's office also charged J. Bryan Williams III, a former Mobil
Mobil
Mobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...
executive, with tax evasion relating to kickbacks from Mobil's business in Kazakhstan.
According to the federal bribery charges, Giffen is accused of creating Swiss bank accounts and transferring $20 million, paying tuition at exclusive boarding schools for family members of Kazakh officials, and buying millions of dollars in jewelry. Giffen's lawyers assert that Giffen was acting with the full knowledge and approval of the US government. Giffen has requested access to classified information at his trial to back up his claims. The government has opposed the revelation of classified information. In August 2010 Giffen pleaded guilty in front of federal court in Manhattan, N.Y. in disclosure of a Swiss bank account on his income tax return. Mercator Corporation which is owned by Giffen pleaded guilty to one count of making an unlawful payment to a senior government official of the Republic of Kazakhstan, in violation of the Foreign Corrupt Practices Act. http://www.justice.gov/opa/pr/2010/August/10-crm-909.html
Mercator faces a maximum fine of the greater of $2 million or twice the gross gain or loss resulting from the offense. Giffen faces a maximum sentence of one year in prison and a fine of up to $25,000.
Reaction
Kazakhstan officially said that the charges have nothing to do with their country as they concern an American citizen, though several American attorneys addressed the US Department of Justice on behalf of Kazakhstan. They requested to stop the proceedings taking into account the strategic importance of US relations with Kazakhstan.Kаzаkhgаtе in fiction
According to the Financial TimesFinancial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
, James Giffen is referenced by former CIA agent Robert Baer
Robert Baer
Robert "Bob" Booker Baer is an American author and a former CIA case officer assigned to the Middle East. He is TIME.com's intelligence columnist and has contributed to Vanity Fair, The Wall Street Journal, and The Washington Post. Baer is a frequent commentator and author about issues related to...
in his book "See No Evil" as "Mr. Kazakhstan" for his ability to influence oil policy in that country. George Clooney
George Clooney
George Timothy Clooney is an American actor, film director, producer, and screenwriter. For his work as an actor, he has received two Golden Globe Awards and an Academy Award...
produced the film "Syriana
Syriana
Syriana is a 2005 geopolitical thriller film written and directed by Stephen Gaghan, and executive produced by George Clooney, who also stars in the film with an ensemble cast. Gaghan's screenplay is loosely adapted from Robert Baer's memoir See No Evil...
" based on this book. Tim Blake Nelson
Tim Blake Nelson
Tim Blake Nelson is an American director, writer, singer, and actor.-Early life:Nelson was born in Tulsa, Oklahoma, the son of Ruth Kaiser Nelson, who is a noted social activist and philanthropist in Tulsa, and a geologist father...
played the role of Giffen.