US jails ex-NNPC upstream GM over $2.1m oil-deal bribery case

US authorities have sentenced Paulinus Okoronkwo, a former general manager in the Nigerian National Petroleum Corporation's upstream arm, to 87 months in prison over a cross-border bribery and money-laundering scheme tied to an oil dispute.

Prosecutors in California said Okoronkwo, who also ran a small law practice in Los Angeles, received $2,105,263 in October 2015 through his firm's trust account from Addax Petroleum, a Swiss unit of Sinopec.

According to court filings cited by the US Attorney's Office, Addax faced major financial exposure in a dispute with NNPC over drilling rights and settlement terms in Nigeria. Investigators said Okoronkwo was in a position to influence that process while owing fiduciary duties to the Nigerian state.

US prosecutors said Addax retained his law firm under an engagement letter that carried a false Lagos address and presented the payment as consulting fees. They argued the transfer was a bribe and not legitimate legal compensation.

Authorities said the transaction was masked in company records as legal fees, with misleading information allegedly given to auditors. On Okoronkwo's side, investigators said the use of an Interest on Lawyers' Trust Account helped conceal personal receipt of funds.

Between 2016 and 2018, prosecutors said he moved money through IPO Capital LLC and spent proceeds on family costs, a vehicle, and property. In 2017, he used $983,200 as a down payment for a house in Valencia, California.

The court also found he failed to report the $2.1 million on his 2015 federal tax return. An obstruction count followed a 2022 interview in which he denied using any of the funds to buy a house and described the money as client funds.

A federal jury convicted him in August 2025 on three counts of transactional money laundering, one count of tax evasion, and one count of obstruction of justice after a four-day trial.

US District Judge John F. Walter ordered an 87-month prison term, $923,824 restitution to the IRS, and forfeiture of nearly $1.04 million linked to the sale of the Valencia property. The State Bar of California suspended Okoronkwo's licence in January 2026.

The investigation was led by the FBI and IRS Criminal Investigation with support from the Justice Department's Office of International Affairs. No public criminal charge has been announced against Addax or other current executives in connection with the case.