What are the US government's charges against Gautam Adani?

The United States Securities and Exchange Commission (SEC) on Wednesday announced that Adani Group's Chairman Gautam Adani and seven others have been charged by the government over a conspiracy to commit securities and wire fraud to obtain funds from US investors and global financial institutions. .The indictment alleged that the accused formulated a scheme to pay over $250 million in bribes to Indian government officials to lie to investors and banks to raise billions of dollars, and to obstruct justice. .United States Attorney for the Eastern District of New York Breon Peace, Deputy Assistant Attorney General for the Justice Department’s Criminal Division Lisa H Miller and Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) James E Dennehy announced the charges.“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vineet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” stated Peace.Miller added, “These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors. The Criminal Division will continue to aggressively prosecute corrupt, deceptive, and obstructive conduct that violates U.S. law, no matter where in the world it occurs.”.Gautam Adani, Sagar Adani and Vineet Jaain have been charged with conspiracy to commit securities and wire fraud. The indictment also accuses Ranjit Gupta and Rupesh Agarwal, former executives of a renewable energy company listed on the New York Stock Exchange, along with Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra - former employees of a Canadian investment firm - of conspiring to violate anti-bribery laws. It has been alleged that the bribery scheme, was tied to one of the world’s largest solar energy projects.At the heart of the allegations are US laws called the Foreign Corrupt Practices Act (FCPA) and the Foreign Extortion Prevention Act (FEPA). According to the indictment document, “The FCPA was enacted by Congress for the purpose of, among other things, making it unlawful for certain classes of persons and entities to act corruptly in furtherance of an offer, promise, authorization or payment of money or anything of value, directly or indirectly, to a foreign official for the purpose of obtaining or retaining business for, or directing business to, any person.”.The US prosecutors have levelled five counts on these persons. Below is a quick rundown on what these allegations are.Count 1: Conspiracy to violate the Foreign Corrupt Practices Act .Prosecutors allege that between 2020 and 2024, Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra and Rupesh Agarwal conspired to bribe Indian officials to secure energy contracts. They purportedly used intermediaries and shell companies to make corrupt payments in exchange for favorable decisions from Indian government agencies. The scheme aimed to benefit the defendants' companies by influencing Indian officials to violate their duties, secure improper advantages and direct lucrative contracts to the defendants’ entities.Among the overt acts described in the indictment are:Exchanges of electronic messages discussing efforts to "motivate" state-level officials to purchase power under a linked energy project.Meetings between the defendants and foreign officials, where bribes and corrupt schemes were allegedly negotiated.Attempts to finalise payments and conceal transactions through coded language and misleading records..Count 2: Securities fraud conspiracy.It has been alleged that Gautam Adani, Sagar Adani and Vineet Jaain conspired to defraud investors by issuing bonds based on manipulated and misleading financial information. The indictment details a scheme to employ deceptive practices, such as omitting material facts and falsifying corporate resolutions, to attract US investors to their bond offerings.Key allegations include:Approval of misleading financial documents tied to a $750 million bond issuance.Misrepresentation of the use of bond proceeds during presentations to US investors..Count 3: Wire fraud conspiracy.The defendants are also accused of a wire fraud conspiracy, in which they allegedly used false promises and fraudulent representations to secure loans and investments from lenders and investors. Prosecutors claim that these actions were designed to mislead stakeholders and gain financial benefits for their energy businesses..Count 4: Securities fraud relating to 2021 bond offering.This indictment charges Gautam Adani, Sagar Adani and Vineet Jaain of securities fraud related to a 2021 bond offering. It has been alleged that they knowingly engaged in a scheme to inflate the attractiveness of their bond to investors, employing deceptive tactics and omitting critical financial details..Count 5: Conspiracy to obstruct justice.Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra and Rupesh Agarwal have been charged with conspiring to obstruct ongoing investigations by the US government. According to the indictment, the defendants allegedly destroyed records, withheld evidence and made false statements to investigators in an effort to cover up the bribery scheme.Prosecutors cited meetings and electronic messages where the defendants coordinated their responses to inquiries and discussed strategies to allegedly mislead investigators..What happens if the charges hold?.The indictment seeks the forfeiture of assets derived from the criminal activity, including proceeds from the bribery, fraud and obstruction schemes. .The case will now go for trial, where Gautam Adani and others will defend themselves..[Read the indictment]