Keston oil trader faces jail over multimillion fraud (From News Shopper)

Keston oil trader Bernard Langley faces jail over multimillion fraud

1:39pm Friday 3rd February 2012 in Bromley By David Mills

AN OIL trader from Keston is facing up to 20 years in prison for his role in a multimillion dollar kickback scheme.

Bernard Langley, aged 54, pleaded guilty in a Texas court to conspiring to engage in wire fraud in connection with a scheme to overcharge a Houston refinery for shipping oil from Venezuela.

A co-defendant and fellow oil trader Clyde Meltzer, 65, of Houston and Livingston, New Jersey, has also admitted the same charge.

The pair agreed to an order forfeiting numerous assets obtained with proceeds of the kickback scheme, including luxury and classic cars, jewellery, funds in Swiss and Monaco bank accounts, real estate in Texas and Florida as well as investments in a Houston sports bar.

They also face a fine of up to $250,000 (£157,000) and restitution of up to $57m (£36m).

Through a third man, Jonathan Barnes, they arranged for their companies to transport oil on tankers from Venezuela to Houston.

Barnes was an employee at LyondellBassell Industries, of which Houston Refinery is a subsidiary. Houston Refinery imports most of its crude oil from Venezuela, with shipping a significant expense.

In exchange for Barnes agreeing to use their companies, Langley and Meltzer paid Barnes a third of the profits they received.

As a result, Barnes' incentive was to authorise Lyondell, who were unaware of the conspiracy, to pay approximately $82m (£52m) above market rates for the shipping in exchange for kickbacks from the individuals receiving the payments.

Langley and Meltzer controlled two of the bank accounts receiving the payments and used Swiss bank accounts to pay Barnes approximately $20m (£12m) in kickbacks.

Barnes, 56, of Bellaire, Texas, was last month sentenced to seven years in prison on fraud and international money laundering charges resulting from his involvement.

He had pleaded guilty to the charges.

Langley and Meltzer are due to be sentenced in April.