Manuel Chang, the ex-Finance Minister of Mozambique, has been sentenced to 102 months in prison by a federal court in Brooklyn for his involvement in a fraud scheme totaling $2 billion. Chang, who played a pivotal role in this international financial scandal, will also have to pay $7 million in forfeiture, with the potential for additional restitution payments that are yet to be determined, as reported by the U.S. Attorney's Office.
Condemned after a trial in mid-2024, Chang was arrested in South Africa in December 2018 amidst accusations that he leveraged his governmental position to facilitate massive loans, resulting in substantial investor losses across the United States and other nations. His arrest followed a U.S.-issued warrant, and his subsequent extradition to New York took place in July 2023, as detailed by the U.S. Attorney’s Office. Acting U.S. Attorney Carolyn Pokorny showed resolve, stating, “Today’s sentence shows that foreign officials who abuse their power to commit crimes targeting the U.S. financial system will meet U.S. justice,” while emphasizing their pursuit of individuals who disregard U.S. laws.
The Justice Department's officials further elucidated Chang's culpability; Principal Deputy Assistant Attorney General Brent S. Wible condemned his breach of duty by accepting brazen bribes, and FBI Assistant Director in Charge James E. Dennehy highlighted the financial detriment to U.S. investors due to Chang's defrauding actions. Dennehy's statement, which portrays a narrative of gross misconduct, pointed out that Chang leveraged his position to enrich himself, thus betraying his office's trust.
Central to the misconduct, Chang received bribes to secure backing for three maritime project loans, but the scheme to divert funds was laid bare, over $200 million was misappropriated to pay off various bribes and kickbacks – and these nefarious dealings resulted in a substantial loss to investors as the involved Mozambican companies, Proindicus, EMATUM, and MAM defaulted on their loans, missing over $700 million in payments. Credit Suisse AG and its subsidiary CSSEL were also implicated in the scandal in October 2021, admitting to deceit in loan arrangements where they paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated settlements with various authorities, including those in the U.S and U.K.
The prosecution team from the Office's Business & Securities Fraud Section, comprised of Hiral D. Mehta, Genny Ngai, Jonathan Siegel, and Trial Attorneys Peter Cooch and Morgan Cohen, with support from Paralegal Specialist Timothy Migliaro, led the charge in the courtroom. The Case unfolded with substantial assistance from international partners, specifically South African authorities, in addition to collaboration from entities in the U.K., Switzerland, Spain, and Portugal, underscoring the global effort to ensure justice.
