Chalmers Pleads Guilty in Oil Case

August 20, 2007
The Wall Street Journal
Original Source: http://online.wsj.com/article/SB118757669068002598.html
Texas oil man David B. Chalmers Jr. and two companies pleaded guilty to a criminal charge in connection with a scheme to pay kickbacks to obtain oil under the United Nations oil-for-food program. 
Mr. Chalmers, 53 years old, the sole shareholder of Houston oil company Bayoil Inc., and two Bayoil companies entered guilty pleas to a single count of conspiracy to commit wire fraud at a hearing before U.S. District Judge Denny Chin in Manhattan. 
Mr. Chalmers admitted to making payments to a company that he expected to transfer the payments to the Iraqi government. Those payments, which he said were demanded by the government of Iraq, were in exchange for oil under the U.N. program.
The maximum penalty on the charge is 20 years in prison. Under federal sentencing guidelines, Mr. Chalmers will likely face 37 months to 46 months in prison. Sentencing is set for Nov. 19. Mr. Chalmers and the companies agreed to forfeit more than $9 million as part of a plea deal.