US oil trading company pleads guilty in Oil-for-Food scandal Holly Manges Jones at 12:34 PM ET
[JURIST] A Virginia oil trading company has pleaded guilty [press release] to charges of first-degree grand larceny in connection with the United Nations Oil-for-Food scandal [JURIST news archive], according to a US prosecutor Thursday. Midway Trading was accused of paying kickbacks to Iraqi officials for oil purchases made under the program and will pay a $250,000 fine for its guilty plea. Midway and Bulf Oil are both accused in the kickback scheme for allegedly paying over $440,000 to Iraq for oil purchases, but the companies denied the payments to UN investigators. The announcement of the guilty plea was made by Manhattan District Attorney Robert Morgenthau, and while the UN-backed Independent Inquiry Committee [official website] would not comment on whether it had worked with Morgenthau on the case, a committee spokesman said they have previously cooperated with the district attorney. AP has more.
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