Billionaire Chairman of Conglomerate and Seven Other Senior Business Executives Indicted in Connection With Scheme to Pay Hundreds of Millions of Dollars in Bribes and Conceal Bribery Scheme From U.S. Investors

 

More than $250 Million in Bribes Promised to Indian Government Officials to Secure Solar Energy Contracts

A five-count criminal indictment was unsealed in federal court in Brooklyn charging Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain, executives of an Indian renewable-energy company (the Indian Energy Company), with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.  The indictment also charges Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company with securities that had traded on the New York Stock Exchange (the U.S. Issuer), and Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, former employees of a Canadian institutional investor, with conspiracy to violate the Foreign Corrupt Practices Act in connection with a bribery scheme also perpetrated by Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain, involving one of the world’s largest solar energy projects.

Breon Peace, United States Attorney for the Eastern District of New York, Lisa H. Miller, Deputy Assistant Attorney General for the Justice Department’s Criminal Division and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charges.

“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” stated United States Attorney Peace.  “My Office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets.”

“This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” stated Deputy Assistant Attorney General Miller.  “These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors.  The Criminal Division will continue to aggressively prosecute corrupt, deceptive, and obstructive conduct that violates U.S. law, no matter where in the world it occurs.” 

“Gautam S. Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation,” stated FBI Assistant Director in Charge Dennehy.  “The FBI maintains its steadfast mission to expose all corrupt agreements, especially with international governments, and protect investors from related harm.”

As alleged in the indictment, between approximately 2020 and 2024, the defendants agreed to pay more than $250 million in bribes to Indian government officials to obtain lucrative solar energy supply contracts with the Indian government, which were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme).  On several occasions, Gautam S. Adani personally met with an Indian government official to advance the Bribery Scheme, and the defendants held in-person meetings with each other to discuss aspects of its execution.  The defendants frequently discussed their efforts in furtherance of the Bribery Scheme, including through an electronic messaging application.  The defendants also extensively documented their corrupt efforts:  for example, Sagar R. Adani used his cellular phone to track specific details of the bribes offered and promised to government officials; Vneet S. Jaain used his cellular phone to photograph a document summarizing various bribe amounts the U.S. Issuer owed the Indian Energy Company for its respective portion of the bribes; and Rupesh Agarwal prepared and distributed to other defendants multiple analyses using PowerPoint and Excel that summarized various options for paying and concealing bribe payments (Bribery Analyses).

During this same period, Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain allegedly conspired to misrepresent the Indian Energy Company’s anti-bribery and corruption practices and conceal the Bribery Scheme from U.S. investors and international financial institutions in order to obtain financing, including to fund those solar energy supply contracts procured through bribery.  As alleged, Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain caused the Indian Energy Company and certain of its subsidiaries to raise capital on the basis of false and misleading statements in connection with (i) two U.S. dollar-denominated syndicate loans totaling more than $2 billion from lender groups comprised of international financial institutions and U.S.-based investors; and (ii) two Rule 144A bond offerings for more than $1 billion underwritten by international financial institutions, which were marketed and sold to investors in the U.S., among other places.  In addition, Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain caused the Indian Energy Company to make false statements in their consolidated financial statements and to the market and investors regarding the Bribery Scheme.

The indictment further alleges that Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra and Rupesh Agarwal conspired to obstruct the grand jury, FBI and U.S. Securities and Exchange Commission (SEC) investigations into the Bribery Scheme.  Among other things, those four defendants agreed to delete electronic materials related to the Bribery Scheme, including emails, electronic messages and Bribery Analyses; caused the U.S. Issuer’s Board of Directors to initiate an internal investigation into the Bribery Scheme and then withheld material information from that investigation; and falsely denied their participation in the Bribery Scheme to representatives of the FBI, DOJ and SEC at meetings in Brooklyn, New York.  For this conduct, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra and Rupesh Agarwal are charged with conspiracy to obstruct justice.

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.                    

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including bribery and fraud.

The investigation was conducted by the FBI New York’s Corporate, Securities and Commodities Fraud and International Corruption Units.  The government’s case is being handled by the Business and Securities Fraud Section of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section.  Assistant U.S. Attorneys Sarah M. Evans, Matthew R. Galeotti and Jessica K. Weigel of the Eastern District of New York, Shy Jackson of the Criminal Division, Fraud Section’s FCPA Unit and Andrew Tyler of the Fraud Section’s Market Integrity and Major Frauds Unit are prosecuting the case with assistance from Paralegal Specialists Liam McNett, Angelina Tyler and Nadiya Singh.  

The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters.  Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

The Department of Justice’s Office of International Affairs and the SEC’s New York Regional and Boston Regional offices provided valuable assistance during the investigation.

Attorney General James Urges Veterans and Service Members to File Claims to Receive Refunds from Harris Jewelry Settlement

 

Federal Court Orders Harris Jewelry to Reopen Portal for Defrauded Consumers to File Claims for Refunds; Portal Will Close on December 21st

New York Attorney General Letitia James today urged service members and veterans who were deceived by Harris Jewelry to file claims to receive refunds from her office’s settlement with the company on or before December 21st. The U.S. District Court for the Eastern District ordered Harris Jewelry to reopen its portal to allow defrauded consumers to file claims for refunds from a July 2022 settlement reached by Attorney General James and the Federal Trade Commission (FTC). The settlement required Harris Jewelry to cancel $21.3 million in debt for more than 13,000 people and provide $12.8 million in refunds for more than 40,000 who were misled into paying for lifetime protection plans on low-quality jewelry without disclosure. Eligible service members and veterans should file a claim online for a refund on or before December 21st.

“Service members and veterans give up so much to serve our country, and they deserve to be honored and respected, not misled and defrauded,” said Attorney General James. “I was proud that my office secured a major settlement with Harris Jewelry over their deceptive practices, and I urge impacted New Yorkers to file a claim now to get their money back before the refund portal closes on December 21st. Our office is committed to protecting our veterans and holding predatory businesses that harm service members accountable.”

Consumers who purchased items from Harris Jewelry and paid for a Lifetime Jewelry and Watch Protection Plan, and have yet to file a claim or previously filed a claim but did not hear back from Harris Jewelry, are encouraged to file a claim online as soon as possible. Anyone experiencing an issue filing a claim should contact the Office of the Attorney General’s (OAG) Watertown Regional Office by calling 315-523-6080. Over 30,000 consumers remain eligible for refunds from a fund exceeding $8 million.

Harris Jewelry deceived active-duty service members and veterans by claiming that they could improve their credit if they enrolled in their financing program and invested in their jewelry products. However, service members were burdened with high interest rates, thousands of dollars in debt, and poor-quality jewelry, ultimately resulting in damaged credit scores. Harris Jewelry was also responsible for inflating prices and adding hidden fees without disclosure while promising charitable donations to Operation Troop Aid, Inc.

Attorney General James and the FTC co-led an 18-state agreement that required Harris Jewelry to stop collecting outstanding debts, refund thousands of service members, correct bad credit scores, and dissolve all its businesses. As part of the agreement, Harris Jewelry stopped collecting $21,307,229 in outstanding debt held by 13,426 service members. In New York, 443 service members had $756,644 in debt canceled. Harris Jewelry also vacated judgments against 112 consumers totaling $115,335.64 and deleted any negative credit entries reported to consumer reporting agencies.

To file a claim for a refund from Harris Jewelry, visit their online portal. 

Statement from NYC Comptroller Lander on Today's City of Yes Vote

 

Ahead of the City Council’s vote on the City of Yes housing plan, New York City Comptroller Brad Lander released the following statement: 

“Hard-working New Yorkers are struggling under the crushing cost of housing, dedicating half their paycheck to rent because generations of City leaders have failed to adequately increase the city’s housing supply.  

“Today, by passing the most robust version of City of Yes, New York City can begin to address our housing shortage by building a little more housing in every neighborhood. I urge the Council to resist NIMBY pressure to trim the proposal and roll back urgently needed housing reform.  

“City of Yes alone isn’t going to solve our affordability crisis. We’ll still need efforts like the one I was proud to lead in Gowanus, where 8,000 units of housing are rising, 3,000 of them affordable to working-class families. And we need new approaches to affordable homeownership, preserving distressed rental housing, expanding rental assistance, and much more. But City of Yes is a big and crucial step in the right direction.  

“New York City will never pull out of our housing affordability crisis if we continue to prioritize parking spaces over housing in transit-rich neighborhoods.” 

MAYOR ADAMS SUSPENDS OPEN FLAME AND FIREWORK PERMITS CITYWIDE AMID DECLARED DROUGHT WARNING, HIGH FIRE RISK

 

Declaration Comes After City Saw Longest Rainless Streak in Recorded History 

 

 City’s Water Supply Needs Almost Eight Inches of Rain to Reach Normal Levels 

  

Mayor Banned Grilling in Parks, FDNY Created First-Ever Brush 

Fire Task Force in Response to Historic Increase in Brush Fires 

  

Drought Warning is Second of Three Levels of Water Conservation Declaration Possible by City; Mayor Issued Drought Watch on November 2nd and Warning on November 18th  

New York City Mayor Eric Adams, Fire Department of the City of New York (FDNY) Commissioner Robert Tucker, and New York City Department of Parks and Recreation (NYC Parks) Commissioner Sue Donoghue today announced additional measures that the city is taking to prevent brush and forest fires amid the city’s ongoing drought warning, declared on Monday, as well as an increased fire risk. Effective immediately, the city is suspending the issuance of permits for fireworks displays or open flames across the entire city. Additionally, NYC Parks is cancelling previously-issued permits for fireworks displays or open flames in city parks and FDNY will review previously-issued permits for those activities in or over city streets or waters on a case-by-case basis. The city will work with individuals and groups who had those permits if they wish to proceed with their previously-scheduled event using alternatives to fireworks displays or open flames. 

  

“With the historic level of brush fires we’ve seen, and the continued rainfall shortage and drought conditions, we’re stepping up our efforts even further,” said Mayor Adams. “The measures we’re announcing today will help prevent additional fires, protect our natural spaces and our air, and keep New Yorkers safe. But we can’t do this alone — in addition to conserving water, we need New Yorkers to be particularly cautious if you choose to grill, smoke, or undertake other activities that involve open flames. This is absolutely not the year to try deep-frying your turkeys.” 

  

“As our region faces worsening drought conditions, we are now in a drought warning posture and urgently call on all New Yorkers to remain vigilant and take immediate action to protect our city. This is a critical moment, and every effort counts. We commend our partners at NYC Parks, FDNY, and all city agencies for their proactive and precautionary measures to safeguard our communities,” said Chief of Staff and Extreme Weather Coordinator Camille Joseph Varlack. “Our administration is working tirelessly to monitor the evolving situation, issue updated guidance, and implement essential protections to ensure the safety and well-being of all New Yorkers during this prolonged and challenging dry period. Together, we will navigate this crisis and build resilience for the future.” 

  

“Keeping our city safe during this historic drought requires more than just the hard work of our first responders; it requires all of us to be good neighbors,” said Deputy Mayor for Public Safety Chauncey Parker. “We have a shared responsibility to each do what we can to protect lives, property, and safety in our communities.” 

  

“We’ve all seen the impact of brush fires from Brooklyn to the Bronx amid the ongoing drought — which is why we are taking the commonsense measure to suspend all open flame and firework permits citywide,” said Deputy Mayor for Operations Meera Joshi. “We must all do our part to keep each other, and our public realm, safe from fire.” 

   

“With a drought warning still in place, we continue to urge New Yorkers do their part, conserve water, and adhere to these important safety guidelines to reduce the chances of brush fires occurring in our city,” said FDNY Commissioner Tucker. “The FDNY has responded to more than 300 brush fires already this month and we need the public to remain vigilant and conserve water so that we can continue to effectively extinguish fires when they occur.” 

  

“Though hosting firework shows has long been a tradition in New York City’s parks, the unprecedented number of brush fires we’ve seen devastate our green spaces over the past few weeks require us to make smart decisions to help keep our city safe,” said NYC Parks Commissioner Donoghue. “We urge all New Yorkers to take these drought guidelines seriously, do their part to conserve water, and not take any unnecessary risks for the safety of our communities and the health of our precious natural resources.” 

  

“Dry conditions are fueling a dangerous fire risk across our city, and suspending permits for fireworks and open flames is a necessary step,” said New York City Emergency Management (NYCEM) Commissioner Zach Iscol. “As NYCEM and our sister agencies work tirelessly to mitigate risks, coordinate efforts, and respond effectively to any incidents, we're asking all New Yorkers to do their part and be extra vigilant: report any signs of smoke or fire to 911 immediately, and please dispose of cigarettes properly. This is also a good time to check that you have working smoke alarms and a go bag with essential documents, medications, and supplies ready, just in case you need to leave your home in a hurry. We all have a role to play in keeping our city safe.”  

  

“Suspending permits for fireworks displays and open flames is an essential step in reducing the heightened risk of dangerous brush fires, which have surged due to the unprecedented dry conditions New York City is facing. Firefighting requires significant amounts of water, so taking proactive measures and focusing on prevention not only protects our residents and green spaces, but also preserves our water supply for essential needs,” said New York City Department of Environmental Protection (DEP) Commissioner and Chief Climate Officer Rohit T. Aggarwala. “I urge all New Yorkers to conserve water and refrain from any activities that could ignite fires during this historic dry spell. By working together, we can safeguard our city.” 

  

The additional measures come as New York City responds to an unprecedented uptick in the number of brush fires. In the two-week period from November 1, 2024 – November 14, 2024, the FDNY responded to 271 brush fires citywide — the highest amount in a two-week period in New York City history. In response, the FDNY created its first-ever Brush Fire Task Force, comprised of fire marshals, fire inspectors, and tactical drone units. The task force will help ensure rapid and effective responses to brush fires, conduct comprehensive investigations to help determine the cause and origin of each fire, and enhance data and information sharing to prevent fires from occurring. 

  

Mayor Adams also issued additional reminders to New Yorkers of key steps to help prevent fires amidst dry conditions: 

  

•   Grilling is banned in New York City parks throughout the duration of drought conditions. 

•   Fireworks remain illegal across New York City. 

•  Take extra safety precautions when welding or undertaking other hot construction activities, particularly when near dry grass or leaves. 

•  Smoking remains illegal on construction sites across the five boroughs. Additional information on construction site fire safety is available online. 

•   Outside of construction sites, New Yorkers who choose to smoke should always dispose of cigarette butts and matches properly. 

•   New Yorkers should stay on designated trails when enjoying city parks, so as to help protect surrounding vegetation and minimize the risk of accidental fires.  

•   Tapping streetlights for electricity (for things like holiday decorations) remains illegal, as it poses a large fire risk. 

•   As fallen and bundled leaves can be a fire accelerant, New Yorkers should continue to set out yard waste on their recycling day for New York City Department of Sanitation pickup and call 311 to have DEP clear clogged catch basins. 

•   New Yorkers should remove litter and any excessive brush or leaves from sidewalks abutting their residences and businesses. 

•   New Yorkers sensitive to changes in air quality should continue to take appropriate precautions and check AirNow’s website for information on city air quality. 

•   All New Yorkers should subscribe to Notify NYC for up-to-date information. 

  

A drought warning is the second of three levels of water conservation declarations from the city. As conditions evolve, the city may declare a drought emergency, which involves escalating requirements on government agencies and New Yorkers to reduce water usage. 

  

 

  

Stages of drought response in New York City. Credit: City Hall 

  

Mayor Adams, today, also reminded all New Yorkers to do their part to conserve water. Some simple tips include:   

  

•   Report open fire hydrants and street leaks to 311. An open hydrant can release more than 1,000 gallons per minute, which wastes 1.4 million gallons of drinking water in a 24-hour cycle.  

•   Don't flush the toilet unnecessarily. According to the U.S. Environmental Protection Agency (EPA), toilets are by far the main source of water use in a home, accounting for nearly 30 percent of an average home's indoor water consumption. Each flush can use 1.6 gallons, with older models using as much as six gallons.   

•   Take shorter showers, saving five to seven gallons a minute. When taking a bath, fill the tub only halfway and save 10 to 15 gallons.  

•   Don't run the tap while shaving, washing hands, or brushing teeth. Faucets use two to three gallons per minute.   

•   Fix leaks. A leaky faucet that drips at the rate of one drip per second can waste more than 3,000 gallons per year, according to the EPA.  

•   Run the dishwasher and washing machine only when full. Use short cycles if available. Turn off the water while washing dishes.  

•   Install water-saving fixtures, including low-flow toilets and showerheads, as well as faucet aerators.  

•   Sweep driveways and sidewalks clean rather than washing them down with a hose.  

•   For even more ideas, visit DEP's Water Savings Tips website.  

  

  

New York City has been successful in conserving water for decades. The city’s average daily water demand has decreased by approximately 35 percent over the past several decades, even as the city’s population has grown by more than 1 million people. During its peak, in 1979, the city’s average water usage was 1.5 billion gallons of water a day. Thanks to improved management strategies — systemwide leak detection and repairs, replacing old meters with automated meter readers, and providing an online platform for customers to track and monitor water usage and quickly detect leaks in their buildings — the city now uses just 1.1 billion gallons a day on average, and under 1 billion gallons during the winter months.  

  

DEP manages the nation’s largest municipal water supply system, which provides high-quality drinking water each day to nearly 10 million residents, including 8.3 million in New York City. The water is delivered from a watershed that extends more than 125 miles from the city, comprising 19 reservoirs and three controlled lakes. Approximately 7,000 miles of water mains, tunnels, and aqueducts bring water to homes and businesses throughout the five boroughs.