International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Sunday, December 30, 2018

Former Alstom Power Global Sales Director sentenced to 4.5 years for corruption

Today, Nicholas Reynolds received 4 years and 6 months imprisonment for his part in a conspiracy to bribe officials in Lithuania’s Elektrenai power station and senior Lithuanian politicians in order to win two contracts worth €240 million.

He was also ordered to pay costs of £50,000.

In sentencing the former Global Sales Director for Alstom Power Ltd’s Boiler Retrofits unit, HHJ Beddoe said:

“This was sophisticated corruption, planned and executed under your direction over many years. This was a very serious example of the bribery and corruption that beleaguers the civilised commercial world and is a cancer upon it. Even if you do not create the disease but help it spread, you bear a very heavy responsibility, and the more senior your position, the more serious it obviously is.”

Lisa Osofsky, Director of the Serious Fraud Office said:

“The substantial prison sentences imposed in this case reflect the seriousness of the bribery and corruption. We can only hope that this may deter others tempted to resort to illicit means to win contracts.

“We are grateful for the assistance provided by our international partners across more than 30 countries for helping us deliver these results.”

Reynolds’ sentencing follows the conviction and sentencing of Alstom Power Ltd, its former Business Development Manager John Venskus and former Regional Sales Director at Alstom Power Sweden AB Göran Wikström for their part in the conspiracy.

John Venskus was sentenced to 3 years and 6 months imprisonment on 4 May 2018. Göran Wikström was sentenced to 2 years and 7 months imprisonment on 9 July 2018, and was also ordered to pay £40,000 in costs.

Alstom Power Ltd was ordered to pay a total of £18,038,000 which included:

  • A fine of £6,375,000
  • Compensation to the Lithuanian government of £10,963,000
  • Prosecution costs of £700,000

Notes to Editors

  1. The SFO investigation commenced in 2009 as a result of information provided by the Office of the Attorney General in Switzerland concerning the Alstom Group, in particular Alstom Network UK Ltd.
  2. Nicholas Reynolds was convicted of conspiracy to corrupt at Blackfriars Crown Court on 19 December 2018 – see press release.
  3. Charges brought in relation to the SFO’s Alstom investigation related to:
    1. Alleged corruption in trams and signalling equipment contracts in Tunisia, India and Poland
    2. Alleged corruption in two power station contracts in Lithuania; and
    3. Alleged corruption in a Budapest Metro rolling stock contract in Hungary. Full details on the case available here.
  4. Counsel for the Prosecution
    1. Martin Evans QC
    2. Janet Weeks
  5. Counsel for Nicholas Reynolds
    1. David Spens QC
    2. Philip Evans QC

Related Cases

https://lawprofessors.typepad.com/intfinlaw/2018/12/former-alstom-power-global-sales-director-sentenced-to-45-years-for-corruption.html

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