Manuel Chang, the former Finance Minister of Mozambique, was sentenced today to 102 months in prison for his role in a massive $2 billion international fraud, bribery, and money laundering scheme. The 69-year-old was convicted of accepting $7 million in bribes to approve fraudulent loans, diverting more than $200 million intended for maritime projects to line the pockets of government officials and private entities.
“While serving as Finance Minister of Mozambique, Manuel Chang obtained $7 million in bribe payments in exchange for signing guarantees to secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “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. Chang’s conviction today 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.”
Manuel Chang, a 69-year-old from Mozambique, was implicated in a bribery scheme that involved $7 million in illicit payments, as revealed through court documents and trial evidence. He signed guarantees on behalf of the Republic of Mozambique to facilitate funding for three maritime loans. In a deceptive maneuver, Chang and his accomplices misled banks and investors by claiming that the loan funds would be allocated to the projects rather than to bribe government officials. In reality, over $200 million from the loans was misappropriated, with a significant portion used to pay bribes and kickbacks to Chang and his associates.
The trial evidence revealed that from around 2013 to 2015, Chang, along with his accomplices—including executives from Privinvest Group, a shipbuilding firm based in the United Arab Emirates—facilitated the arrangement of over $2 billion in loans through a United Kingdom subsidiary of Credit Suisse AG and another foreign investment bank. These funds were directed to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM). The loans were intended to finance three maritime projects, with Privinvest responsible for supplying the necessary equipment and services. However, Chang and his co-conspirators misled investors by falsely claiming the funds would go toward the projects, while in reality, a substantial portion was diverted to bribes and kickbacks.
“Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts,” said Brent S. Wible, Principal Deputy Assistant Attorney General of the Justice Department’s Criminal Division. “With today’s sentence, Chang has been held accountable for his violations of U.S. law.”
Chang and his associates unlawfully enabled Privinvest to misappropriate over $200 million from loan proceeds for bribes and kickbacks. This amount included upwards of $150 million that Privinvest funneled to Chang and other officials in the Mozambican government, ensuring that state-owned companies engaged in the loan agreements and that the Mozambican government provided guarantees for those loans. These loans were later sold, either fully or partially, to investors around the globe, including those in the United States. In this process, the participants deceived these investors by falsely representing the intended use of the loan funds.
The scheme led to enormous financial setbacks when the companies involved, such as Proindicus, EMATUM, and Mozambique Asset Management, failed to meet their loan obligations, resulting in over $700 million in missed payments. This left U.S. and international investors facing substantial losses.
Chang was convicted following a trial where he was found guilty of conspiracy to commit wire fraud and money laundering. Alongside his prison term, he was mandated to forfeit the $7 million he received in bribes, with restitution amounts to be determined at a later date.
The investigation was carried out by the FBI’s New York Field Office, which underscored its dedication to eradicating corruption that targets the U.S. financial system. This sentencing represents a crucial advancement in the Justice Department’s ongoing mission to hold foreign officials accountable for actions that adversely affect U.S. investors and the global financial landscape.
In October 2021, Credit Suisse AG and its subsidiary CSSEL acknowledged their involvement in defrauding both U.S. and international investors regarding an $850 million loan for the EMATUM project. CSSEL entered a guilty plea for conspiracy to commit wire fraud, while Credit Suisse AG reached a deferred prosecution agreement with the Fraud Section and the Money Laundering and Asset Recovery Section (MLARS) of the Criminal Division, as well as the U.S. Attorney’s Office for the Eastern District of New York. As part of the settlement, Credit Suisse agreed to pay around $475 million in penalties, fines, and disgorgement, coordinating with both criminal and civil authorities in the United States and the United Kingdom.
