Manuel Chang, the former Finance Minister of Mozambique, was found guilty today by a federal jury of conspiring to commit wire fraud and money laundering as part of a $2 billion fraud, bribery, and money laundering scheme that defrauded investors in the U.S. and other countries. The conviction follows a 4-week trial presided over by U.S. District Judge Nicholas G. Garaufis. Chang, who faces up to 20 years in prison, was arrested in South Africa in December 2018 on a provisional warrant from the U.S. and extradited to New York in July 2023.
The verdict was announced by Breon Peace, U.S. Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, and Christie M. Curtis, Acting Assistant Director in Charge of the FBI’s New York Field Office.
“Today’s verdict is a victory for justice and the people of Mozambique who were betrayed by Chang, a corrupt government official whose greed and self-interest sold out one of the world’s poorest nations,” stated U.S. Attorney Peace. “Chang has been convicted of taking millions in bribes to approve doomed projects, laundering the money, and leaving investors and Mozambique with the burden.”
Principal Deputy Assistant Attorney General Argentieri added, “As Finance Minister of Mozambique, Manuel Chang accepted $7 million in bribes in return for signing guarantees on over $2 billion in loans. His actions not only betrayed the Mozambican people but also caused significant financial losses to investors, including those in the U.S. Chang’s conviction shows our commitment to fighting foreign corruption, no matter where it happens or who is involved.”
During the trial, evidence showed that Chang accepted $7 million in bribes in exchange for securing loans for three maritime projects in Mozambique. Chang and his co-conspirators falsely assured banks and investors that the funds would be used for the projects and that no bribes would be paid. However, they diverted over $200 million from the loans for bribes and kickbacks.
Between 2013 and 2015, as Mozambique’s Finance Minister, Chang and his co-conspirators, including executives from Privinvest Group, a UAE-based shipbuilding company, arranged for over $2 billion in loans through Credit Suisse AG (via its UK subsidiary Credit Suisse Securities (Europe) Limited) and another foreign investment bank. The loans were intended for Proindicus S.A., EMATUM, and Mozambique Asset Management (MAM)—companies owned by the Mozambican government for maritime projects. However, Chang and others facilitated the illegal diversion of over $200 million of these funds for bribes and kickbacks, including more than $150 million to Mozambican officials.
The loans, sold globally to investors, led to substantial losses as Proindicus, EMATUM, and MAM defaulted on over $700 million in payments. In October 2021, Credit Suisse AG and CSSEL admitted to defrauding investors over an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud, and Credit Suisse AG entered into a deferred prosecution agreement, paying about $475 million in penalties, fines, and disgorgement.
The Business & Securities Fraud Section is handling the case, with Assistant U.S. Attorneys Hiral D. Mehta, Genny Ngai, and Jonathan Siegel of the Eastern District of New York, and Trial Attorneys Peter Cooch of the Fraud Section and Morgan Cohen of MLARS leading the prosecution. The Justice Department’s Office of International Affairs and authorities in the U.K., Switzerland, Spain, Portugal, and South Africa provided significant assistance.
By FCCT Editorial Team
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