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Former GM exec indicted.

A former General Motors Corp executive, now said to be living in St Kitts & Nevis, has been indicted in what federal prosecutors said was a kickback scheme involving bulk aluminum sales that cost the automaker about US$80 million, reports Reuters (March 15, 2008):

Daniel Bealko, GM's global commodity manager for lightweight metals between 1996 and Dec. 2003, was accused in a federal grand jury indictment of receiving US$5.4 million in kickbacks from an Illinois metals dealer from the sale of bulk aluminum owned by GM. Prosecutors said the scheme involved hundreds of millions of dollars in aluminum sales in 2002 and 2003 that Bealko made through Fuci Metals USA, a metals sales broker headquartered in Northfield, Illinois;

The indictment alleged that Bealko and Fuci Metals' owner Anthony Brown diverted profits from the metals sales and from futures and options trades to Fuci Metals and to Brown's other businesses. GM assets were pledged against trading losses without company permission. Bealko, 61, was charged with two counts of wire fraud, two counts of interstate transportation of fraudulently obtained funds, and with evading paying more than US$2 million in federal income taxes on the US$5.4 million in kickbacks;

Formerly of Clarkston, Michigan, Bealko was believed to be living here, prosecutors said. Brown, 46, of Highland Park, Illinois, was arrested and charged with two counts each of fraud and transportation of funds. The fraud charges each carry a maximum 20-year penalty, and the other counts carry 5- or 10-year terms. The government is seeking forfeiture of US$83 million of ill-gotten gains by Bealko and Brown.
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Title Annotation:ST. KITTS & NEVIS
Publication:Caribbean Update
Date:May 1, 2008
Words:268
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