Kickbacks for FergusonFRANCIS JOSEPH In Miami Tuesday, November 7 2006
AMERICAN citizens Eduardo Hillman-Waller and Raul Gutierrez stuck to their promise yesterday and pleaded guilty for their role relating to corruption in the construction of the new Piarco Airport Terminal Building. Hillman-Waller admitted in court to paying kickbacks to Trinidadian businessman Steve Ferguson. Gutierrez admitted that he banked millions of United States dollars in an offshore account in the Bahamas for Ferguson, a former Maritime boss.
Both Hillman-Waller and Gutierrez entered plea agreements with the United States Government, which they duly signed before their appearance before US District Judge Paul C Huck in the United States Federal Court.
Gutierrez, in his agreement, agreed to repay US$22,556,100 (TT $142,103,430). Of this amount, he will repay to the Government of Trinidad and Tobago US$4 million or TT $25.2 million. The balance, more than US$18 million is to be repaid to six Miami banks which he defrauded.
Hillman-Waller agreed to pay the TT Government US$2 million or TT $12.6 million. In the plea agreement, Hillman-Waller and Gutierrez also agreed to assist the US Government by providing truthful and complete business information and testimony and producing documents, records and other evidence when called upon, whether in interviews, before a Grand Jury or any trial or court proceedings. They also agreed to testify for the TT Government in the case against eight other persons charged in Port-of-Spain in the second Piarco corruption preliminary inquiry. Because they agreed to testify, the proceedings against them in the TT courts will be discontinued.
They have also agreed to work undercover to contact and negotiate with others suspected and believed to be involved in criminal misconduct. Among those are Ishwar Galbaransingh and Ferguson, who are wanted in Miami on similar charges, but who are fighting extradition to the United States to face trial.
The hearing started promptly at 10 am yesterday. Just minutes before, the two defendants signed the plea agreement in the presence of their attorneys. Hillman-Waller was represented by Donald Bierman, while Bruce Lyons appeared for Gutierrez. Assistant US Attorney Richard Gregorie appeared for the US Government. Sitting in were David West, of the Attorney General’s office in Trinidad, Assistant Commissioner Wellington Virgil, the head of the Anti-Corruption Bureau and US attorney Ed Davis who is representing the TT Government in the civil proceedings filed in the US courts against the same defendants. The banks which were defrauded were also represented at the hearing.
Both defendants had to approach the podium in the middle of the room with their attorneys at their sides. Both swore to tell the truth as they faced a stern-face judge. Judge Huck then asked them individual questions.
Hillman-Waller, 70, said he was born in Cuba, but was now a US citizen. He was a graduate of Columbia University. Gutierrez, 55, was also born in Cuba and attended the University of Miami. They both then agreed to plead guilty to the charge of conspiracy to commit wire fraud between, September 1996 and January 16, 2001, for the purpose of executing a scheme to defraud and obtain money and property from others by means of materially false and fraudulent pretences, representations and promises.
Because they agreed to plead guilty on this charge, the US Government dropped the other counts on the indictment of money laundering. Gutierrez and his company, Calmaquip Engineering Corporation, faced an additional charge of bank fraud committed on August 23, 2001.
Both defendants told the judge that they were aware that the court can impose a term of imprisonment of up to five years followed by a term of supervision of up to three years on the first count. They also agreed that the court could impose a fine of US$250,000. Gutierrez faces an additional five years on the next count along with a US$1 million fine.
Judge Huck said that in light of the plea agreement, neither Hillman-Waller nor Gutierrez could appeal. Both defendants said they discussed this matter with their attorneys and they accepted it. In answer to the judge, both defendants said no promises, threats or inducements forced them to plead guilty to the charges. “We voluntarily agreed to plead guilty because we are guilty,” Hillman-Waller and Gutierrez said one after the other.
The judge then turned to the prosecutor and asked him what was the case for the US Government.
Gregorie said the purpose of the conspiracy was to defraud the Government of Trinidad and Tobago by manipulating the bid process for certain Piarco International Airport construction packages so that the defendants would unjustly enrich themselves through the receipt of proceeds from excessively inflated contracts and to transfer those proceeds in interstate and foreign banks in order to conceal and disguise the nature and location of those proceeds.
Gregorie said through the seizure of bank documents and records, the Government was able to score a breakthrough in the way the defendants went about the scheme. He said the defendants believed that Ferguson and Galbaransingh would use their political and economic influence to manipulate and control the bidding and selection process for the construction project at the airport. He said both defendants arranged for another company, SDC, to submit a fraudulent and excessive bid for CP-9 so that the overpriced bid submitted by Galbaransingh’s Northern Construction Company, would be accepted. In his presentation, Gregorie said Hillman-Waller gave kickbacks to Ferguson for favours done in Trinidad. At the end of the prosecution’s presentation, Hillman-Waller admitted the facts, saying “I did do what the Government says.”
Hillman-Waller then formally pleaded guilty to the charge of conspiracy to commit wire fraud. Judge Huck said the court needed to conduct an investigation into what is the appropriate sentence for Hillman-Waller. Sentencing has been fixed for January 16, 2007. Hillman-Waller was released on bail, but at the request of his attorney, his electronic monitor was removed. He had been under house arrest at his home in Miami after he was caught attempting to leave the United States. He was unable to attend the last three hearings in the Piarco case in Trinidad.
Gregorie then turned to Gutierrez, the President of Calmaquip. In his presentation, the prosecutor painted a picture of corrupt acts, showing that Calmaquip charged the TT Government US$30 million for equipment for the new airport, when it really cost US$12 million. He said Calmaquip rigged the bid process, by bidding twice the value of the contract (US$30 million). He said Gutierrez then arranged for a Portuguese company, Suarez da Costa, to bid US$35 million which was eventually rejected. He said an official from the Portuguese company flew to Trinidad for the bidding process but his trip was paid for by Gutierrez. Gregorie even pointed out that Ferguson’s Maritime Insurance Co put up the bond for the Portuguese company to bid.
As part of the corruption, Gregorie said Gutierrez placed millions of dollars in the Bahamas for Ferguson, the influential political advisor in Trinidad. Gregorie also revealed that Gutierrez and Calamaquip defrauded six banks in Florida – Colonial Bank, Wachovia Bank NA; Totalbank; Hemisphere National Bank; International Bank of Miami; and Intercredit Bank, NA.
When Gregorie was through, Judge Huck turned to Gutierrez, “Did you do what was said?” The defendant replied yes. Gutierrez agreed to repay more than US$18 million to the six banks. He also agreed to pay US$4 million to the TT Government. How would he repay the money?
Gutierrez said that as a first step to settlement, he has agreed to sign away ownership in a property in Coral Gables to the Government. He will also dispose of jewelry worth US$88,000 which he has in deposits in the Mellon United National Bank. He would also hand over art work valued US$175,000 which he bought with the proceeds of the fraud. He also agreed to hand over 15 bank accounts in Miami, the amounts of which were not disclosed in the agreement. Gutierrez agreed to assist the US Government in identifying foreign accounts and to assist in the repatriation of the funds.
When all that was said and done, Judge Huck said the court does not have to take into account anything in the plea agreement. “You must understand that any recommendation that the Government makes to the court as to sentencing, whether pursuant to the agreement or otherwise, is not binding on the court and the court may disregard the recommendation in its entirety,” the judge added.
Sentencing for Gutierrez was put to January 16, 2007 and he too was released on bail.
