An American International Group Executive pleaded not guilty yesterday in Manhattan Federal Court to charges he was part of a multi-million-dollar scheme to bribe top Azerbaijan officials to buy its state oil operation at a bargain price.
David Pinkerton, the managing director of AIG Global Investment Corporation entered his plea before U.S. District Court Judge Casey after the unsealing of a 27 Count indictment.
Mr. Pinkerton was accused with Czech offshore investment firm operator Viktor Kozeny, 42, and U.S. businessman, Frederic Bourke, 59, of conspiracy to violate the Foreign Corrupt Practices Act, the Travel Act and various related crimes including money laundering and false statements.
Mr. Pinkerton and Mr. Bourke were freed on personal recognizance bond after both pleaded innocent at arraignment following their surrender to the Federal Bureau of Investigation.
A spokesperson for the U.S. Attorney's Office in Manhattan said Mr. Kozeny's extradition was being sought following his arrest in the Bahamas. He is an Irish citizen, according to court papers.
AIG said Mr. Pinkerton was placed on administrative leave pending resolution of the charges, which it said involved his AIG subsidiary's investment of approximately $15 million in Azeri privatization in 1998.
It said the investment had been brought to AIG by Omega Partners Advisors New York investment fund.
One of the principals of Omega, Clayton Lewis, is named as an unindicted coconspirator in the indictment and has previously pleaded guilty to the scheme, according to the U.S. Attorney's Office.
AIG said no clients' money was invested in the transaction. U.S. authorities said despite $11 million in bribes the scheme never came to fruition and the industry has not been privatized.
The insurer said that when it discovered in 1999 that it had been defrauded by Mr. Kozeny, "AIG and other investors commenced lawsuits in the United States, the United Kingdom and the Bahamas. Kozeny was indicted in 2003 by the New York County District Attorney's Office for this fraud.
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