We may earn commissions if you use the recommended services on this site.  

Oil Trader Faces Criminal Trial for Concealing Iranian Crude

Latest Business News

Financier Faces Criminal Trial in Milan for Fraud Over Oil Delivery

A financier and trader, known for his involvement in the UK oil industry, is among the individuals facing a potential criminal trial in Milan for fraud related to the attempted delivery of crude from Iran. Francesco Mazzagatti, the former owner of oil trading business Napag, is accused of disguising hundreds of thousands of barrels of crude as Iraqi oil, potentially violating US sanctions. Milan prosecutors have identified five individuals and three companies, including Mazzagatti's former business, as potential defendants in the case. The incident, referred to as the "White Moon" incident after the tanker carrying the cargo, involved Eni SpA's trading unit. A pre-trial hearing has begun, and a judge will determine whether a full trial will proceed. Mazzagatti's spokesperson has stated that he is no longer associated with the business in question and denies any wrongdoing. Former Eni officials and a Napag executive are also accused of conspiring to hide the true origin of the cargo. The case arose after Eni was forced to return the shipment of approximately 700,000 barrels of oil when laboratory results confirmed it was not the expected Iraqi grade. Payments were allegedly made in euros instead of US dollars to avoid detection by US authorities. All parties involved deny the allegations. Eni and Mantovani's lawyer have declined to comment on the ongoing hearing. Mazzagatti, who has since become an active player in the UK oil industry, faces separate legal issues related to his new company, Viaro Energy Ltd. The allegations involve an allegedly illegal dividend payment. Mazzagatti denies these claims.

Implications of Fraud Allegations for New Businesses in the Oil Industry

The potential criminal trial facing financier and trader Francesco Mazzagatti for fraud over oil delivery could have significant implications for new businesses in the oil industry. The case underscores the importance of compliance with international sanctions and the potential legal repercussions of non-compliance.

Understanding International Sanctions

Mazzagatti is accused of disguising crude oil as Iraqi oil in an attempt to circumvent US sanctions on Iran. This highlights the critical importance of understanding and adhering to international sanctions in the oil industry. New businesses must ensure they have robust compliance systems in place to avoid similar allegations.

The Importance of Transparency

The case also underscores the importance of transparency in business operations. Allegations of conspiring to hide the true origin of cargo can damage a company's reputation and result in legal consequences. New businesses should prioritize transparency in all aspects of their operations, particularly in areas subject to close scrutiny such as supply chains.
Legal Risks and Business Operations
Mazzagatti's case serves as a reminder of the legal risks associated with business operations. In addition to the fraud allegations, Mazzagatti faces separate legal issues related to his new company. This underscores the need for new businesses to ensure their operations are legally sound, not just at inception but as they grow and evolve. In conclusion, while the specifics of Mazzagatti's case are unique, the broader themes of compliance, transparency, and legal risk are relevant to all new businesses in the oil industry.
Story First Published at: https://financialpost.com/pmn/business-pmn/oil-trader-facing-criminal-trial-over-disguised-iranian-crude
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online
Business Formation Services: View Top 3 Online LLC Filing Companies

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.