Smartmatic executives accused of orchestrating $1 million bribery and money laundering scheme
- The executives are accused of a scheme to bribe Philippine officials
- Reportedly ‘coded language’ used to refer to ‘slush fund’; pair placed on leave
Three current and former Smartmatic executives are accused of orchestrating a brazen bribery scheme involving kickbacks related to the use of the company’s voting machine technology.
The lawsuit, filed Thursday in Florida, does not name the company, which rose to prominence in 2000 when supporters of Donald Trump made debunked allegations that the company’s equipment was part of a vote-theft conspiracy theory.
The company is embroiled in a lengthy defamation lawsuit against Fox Corp., in which it is seeking $2.7 billion in damages.
Three men, including 49-year-old Venezuelan Roger Alejandro Pinate Martinez and 62-year-old Jorge Miguel Vasquez, a Florida resident, a U.S. citizen and resident of Davie, Florida, are accused of paying $1 million in bribes to the former chairman of the Philippines’ electoral commission as part of the alleged fraud.
“These bribes were allegedly paid to obtain and retain contracts related to the provision of voting machines and election services for the 2016 Philippine elections and to secure payments for the contracts, including the release of value added tax payments,” according to a Department of Justice press release about the charges.
They reportedly funneled the bribes through a “slush fund,” which was used to inflate the cost of each machine.
Andres Bautista, the Philippines’ former top election official, has also been identified.
Two Smartmatic employees have been indicted by a grand jury for participating in a bribery scandal in the Philippines
‘To conceal and disguise the nature and purpose of the corrupt payments, the accomplices used coded language to refer to the slush fund and created fraudulent contracts and sham loan agreements to justify the transfers. The accomplices then allegedly laundered funds related to the bribery scheme through bank accounts in Asia, Europe and the United States, including in the Southern District of Florida, the release said.
The company recognized Two employees were charged. In a statement, they claimed that there was no fraud in the actual voting in the 2016 Philippine elections. However, they pointed out that the allegations had not yet been proven in court.
“Regardless of the accuracy of the allegations, and while our accused employees remain innocent until proven guilty, we have terminated both employees effective immediately,” the company said.
Smartmatic has filed a $2.7 million defamation lawsuit against Fox Corp. and Donald Trump ally Rudy Giuliani and other defendants
“There has been no voter fraud and Smartmatic has not been charged. Voters worldwide need to be assured that the elections in which they participate are conducted with the utmost integrity and transparency. These are the values that Smartmatic lives by,” the report said.
The company played a major role in the legal battle following the 2020 election, with Trump supporters accusing it of being part of a fraud scheme.
The company has sued Fox News and Newsmax for defamation. In January, a New York judge allowed the case to be heard.
Fox reached a $788 million settlement with another voting machine company, Dominion Voting Systems.
Smartmatic is suing the networks, accusing them of broadcasting claims about the 2020 election that they knew were false, while featuring guests like former Trump lawyer Rudy Giuliani and attorney Sidney Powell who peddled elaborate conspiracy theories. The networks deny the allegations and are fighting them in court.
Pinate and Vasquez are accused of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), an anti-bribery law, and a misdemeanor. Bautista, Pinate, Vasquez and a fourth person, Venezuelan Israeli citizen Elie Moreno, 44, are accused of money laundering charges.
A Fox spokesperson declined to comment.