According to evidence presented at trial, Chang, 68, received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three maritime projects, the release claimed.
Despite assurances to banks and investors that the loan proceeds would fund these projects, Chang and his co-conspirators diverted over $200 million to pay bribes and kickbacks to Chang and others involved in the scheme.
“Not only did Chang’s abuse of authority betray the trust of the Mozambican people, but his corrupt bargain also caused investors—including U.S. investors—to suffer substantial losses on those loans,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said in the release. “Chang’s conviction ... demonstrates that the Criminal Division is committed to combatting foreign corruption in violation of U.S. law, no matter where these schemes occur or whom they involve.”
The southeastern African coastal country is one of the top ten poorest countries in the world.
Between 2013 and 2015, Chang allegedly collaborated with executives from Privinvest Group, a UAE-based shipbuilding company, and arranged for more than $2 billion in loans through a UK subsidiary of Credit Suisse AG and another foreign investment bank.
The loans were purported to fund projects by Mozambican government-controlled companies—however, the funds were largely misappropriated.
“Today’s verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world,” U.S. Attorney Breon Peace for the Eastern District of New York said in the release. “Chang now stands convicted of pocketing millions in bribes to approve projects that ultimately failed, laundering the money, and leaving investors and Mozambique stuck with the bill.”
Chang and his co-conspirators illegally facilitated the diversion by one of the companies of more than $200 million to bribes and kickbacks, including over $150 million to ensure that the Mozambican government entered into loan arrangements.
The loans were sold to investors worldwide, including in the United States, with false representations about their intended use. The companies defaulted on their loans, resulting in over $700 million in missed payments and substantial investor losses, the DOJ said in the release.
Chang was convicted of conspiracy to commit wire fraud and conspiracy to commit money laundering, each carrying a maximum penalty of 20 years in prison. A federal district court judge will determine Chang’s sentence, taking into account the U.S. Sentencing Guidelines and other factors.
The Epoch Times sent a request for comment to Chang’s lawyer, but they didn’t immediately respond.
In October 2021, Credit Suisse AG and its subsidiary, Credit Suisse Securities (Europe) Limited (CSSEL), admitted to defrauding investors related to an $850 million loan for a project involving one of the Mozambique government-affiliated businesses.
Credit Suisse paid approximately $475 million in penalties, fines, and disgorgement as part of resolutions with U.S. and UK authorities.
Assistance in the investigation was provided by the Justice Department’s Office of International Affairs and authorities in South Africa, the United Kingdom, Switzerland, Spain, and Portugal.
