Jorge Grandos, the former Latin Node Inc. CEO, has been charged with violating the FCPA. Mr. Grandos pleaded guilty to conspiring to violate the anti-bribery provisions of the Act. The case is based on over $500,000 in bribes paid by the company to officials in Honduras. The company is a provider of telecommunications services using internet protocol technology to countries around the world.
The company agreed to pay bribes to officials at Empresa Hondurena de Telecommunicaciones or Hondutel, the state owned telecommunications authority in Honduras in connection with a bid for an interconnectedness contract. Portions of the money was laundered through accounts of a company subsidiary in Guatemala to accounts in Honduras controlled by government officials. The company was awarded the contract in December 2005.
The date for sentencing has not been set.
Mr. Grandos is the fourth company executive to plead guilty. In April 2009 the company also pleaded guilty. As part of the plea agreement the company will pay a $2 million criminal fine.