BROOKLYN (CN) — The former finance minister of Mozambique appeared in U.S. federal court Thursday where he was arraigned and jailed on fraud and money laundering conspiracy charges over the massive fraud scheme that devastated his country financially
Manuel Chang, 67, was extradited to the United States after a yearslong effort by the U.S. government. Chang spent the past four and a half years incarcerated in South Africa while Mozambique fought his extradition.
As minister of finance, Chang approved $2 billion in loans to fund maritime projects including maritime security and tuna fishing off the coast of Mozambique. The contractor for the projects, Privinvest, paid $200 million in bribes and kickbacks in order to secure the loans, prosecutors say, with at least $5 million of the money going to Chang.
The loans were then sold to investors, including those within the United States, who lost tens of millions when Mozambique defaulted.
Defense attorney Adam Ford argued that since Chang is also on the hook for charges in Mozambique, he did not pose a flight risk and was committed to fighting the case.
“He’s not going to flee anywhere. He’s going to stay and fight these charges,” Ford said, noting that his client is also under indictment in his home country.
The argument did not sway U.S. District Judge Nicholas Garaufis, who denied bail after Chang pleaded not guilty to the 2019 superseding indictment.
“He knows people in Mozambique in high places,” Garaufis said, “and it may even be that some of those people would prefer him to return to Mozambique rather than to stand trial in Brooklyn, New York.”
Chang’s prosecution comes after Lebanese businessman Jean Boustani was acquitted in 2019 after a seven-week trial in the same federal courthouse on fraud and money laundering charges related to the scandal. Jurors told the press they came to the verdict based on the perception that the Eastern District of New York lacked jurisdiction to prosecute.
Ford intends to file a motion to dismiss the case under the Speedy Trial Act. He noted Chang was kept in solitary confinement for much of the time he was detained in South Africa while international courts resolved the extradition dispute.
As for the U.S. charges, Ford called the prosecution meritless and said even the case against Chang is tangential to the fraud scandal.
“He’s completely removed from the heart of the allegations,” Ford told reporters following the hearing.
Follow @NinaPullano
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
Additional Reads
-
-
Europeans still live longer than Americans May 3, 2024