Feds Open Criminal Probe Into Alcoa

ap ^ | 3/21/08 | Ramesh Santanam

[Flavius]

Feds Launch Criminal Probe Into Aluminum Maker Alcoa Over Alleged Bribery in Bahrain

PITTSBURGH (AP) -- The U.S. Justice Department has begun a criminal investigation into whether aluminum maker Alcoa Inc. participated in bribery in the Persian Gulf state of Bahrain.

In documents filed Thursday in U.S. District Court, federal prosecutors asked a judge to halt a federal civil lawsuit that accused Pittsburgh-based Alcoa of bribing officials through overseas shell companies to secure hundreds of millions of dollars in overpayments.

"The United States has a direct and substantial interest in this case, as the subject matter giving rise to this case is also the subject of an ongoing federal criminal investigation," prosecutors in the Justice Department's fraud section said in court filings.

Aluminum Bahrain B.S.C., also known as Alba, in which the Bahrain government holds a 77 percent stake, is seeking more than $1 billion in damages from Alcoa and other affiliated defendants, according to a federal lawsuit filed last month.

[Flavius]

this should give commodities prices a little extra kick downward

if true it just points to the fact that Laissez Fair policies are cool, and someone must have raised a billion dollars worth of whining for anyone to even get involved

i just wonder how awesome are $19.00/toasters briberies from chicoms, they have to be amazing

[Flavius]

oh and here comes the mother short

[Flavius]

Short Interest (Shares Short) 24,840,900
Days To Cover (Short Interest Ratio) 1.6
Short Percent of Float 3.06 %
Short Interest - Prior 21,273,500
Short % Increase / Decrease 16.77 %

[El Laton Caliente]

I just wonder what interest the US Justice Department has in an international company operating in another country... Where is the jurisdiction?