US wants Bautista’s $1.2 million property forfeited

MANILA, Philippines — United States authorities are seeking the forfeiture of a $1.2-million property in San Francisco, California believed to have been purchased by former Commission on Elections (Comelec) chairman Andres Bautista using bribe money he allegedly received from election technology provider Smartmatic.

The STAR obtained a copy of the 31-page indictment filed against Bautista and three former and current executives of Smartmatic before the Florida Southern District Court in Miami.

It included a forfeiture allegation, which listed a property in San Francisco that was earlier tied to Bautista.

Under US laws, a defendant – upon conviction – must forfeit to the US “any property, real or personal, which constitutes or is derived from proceeds traceable to” the offense.

The US Department of Justice earlier stressed that the indictment is merely an allegation and that “all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”

Bautista is facing one count of conspiracy to commit money laundering and three counts of international laundering of monetary instruments over alleged bribery linked to the 2016 elections in the Philippines.

Also indicted were Smartmatic founder and president Roger Piñate, former Smartmatic vice president for hardware development Jorge Miguel Vasquez and former Smartmatic Philippines general manager Elie Moreno.

Based on the indictment, the San Francisco property was allegedly purchased by an unidentified “family member” of Bautista in 2016.

Prior to the purchase, this relative received a wire transfer of $960,000 from a Singapore-based bank account linked to a shell company owned and controlled by the former Comelec chief.

The indictment alleged that Bautista “wired and caused the wire transfer of $960,000, purportedly as a ‘gift,’” to his relative “to promote the bribery scheme and conceal the proceeds.”

Bautista’s estranged wife, Patricia, earlier alleged that the property was among those not included in the Statement of Assets, Liabilities and Net Worth of the former election official.

The former Comelec chief at the time maintained that he had no unexplained wealth as alleged by his estranged wife.

Following the indictment, he declared the charges were politically influenced by “key Philippine officials.” He did not give details. Bautista has yet to surrender, based on information from the court docket.

‘Generous gift’

The original complaint against Bautista, filed in September 2023, provided more details about the supposed transfer of the fund used to purchase the San Francisco property.

The STAR reviewed the filing dated Sept. 19, 2023 which included an affidavit from Colberd Almeida, special agent of the US Homeland Security Investigations.

The investigator detailed supposed email communication Bautista and family members had regarding the purchase of the property.

Bautista and the family members supposedly “stressed the importance of wiring the funds from the bank account in Singapore directly to Family Member 1, not to the company in charge of the closing for the residence, and to label the wire as a ‘gift.’”

“In another email, Family Member 1 thanked Bautista for the ‘most generous gift you’ve given me this year for my birthday – the opportunity to partner with you on this very large investment,’” read the affidavit.

Almeida believed that the wire transfer for the “residence was not a gift, but a joint real estate investment between Bautista and Family Member 1.”

According to Almeida’s affidavit, Bautista’s relative in New York received the wire transfer of $960,000 on Aug. 23, 2016.

It came from a bank account in Singapore of Baumann Enterprises Ltd., a foreign shell company incorporated in the British Virgin Islands around 2010.

The indictment alleged that Bautista and two relatives owned and were beneficial owners of Baumann, with the former poll chief owning and exercising control over the company and its bank account in Singapore.

Web of transactions

Based on Almeida’s affidavit, the wire transfer to Bautista’s relative happened a day after Bautista’s co-conspirators attempted to wire $500,000 – the second tranche of the alleged bribe – to the Baumann bank account.

The attempt to transfer the first tranche, also amounting to $500,000, happened a week before on Aug. 16, 2016.

Both transfers did not push through due to an issue with the originating bank.

As a result of such issue, Almeida said the Baumann bank account ended up with a “negative balance” after the $960,000 was supposedly sent to Bautista’s relative in New York.

“The evidence suggests that this occurred because based on the conversations described above, Bautista thought that the first two $500,000 wires sent on Aug. 16, 2016 and Aug. 22, 2016, would be credited to his account,” read the affidavit.

He said the bank balance “flipped to positive” following the two wire transfers in late August 2016 of approximately $500,000 each.

However, compliance officials in the Singapore bank flagged the transactions and asked for supporting documents. Bautista supposedly failed to convince the bank officials that the wire transfers were legitimate, prompting the return of the funds in October 2016.

Almeida alleged that Bautista’s co-conspirators used Philippine companies to ultimately transfer the rejected $1 million in several tranches between December 2016 and February 2017 to the former poll chief.

According to the US DOJ, the bribes “were allegedly paid to obtain and retain business related to providing voting machines and election services for the 2016 Philippine elections and to secure payments on the contracts, including the release of value added tax payments.”

“To conceal and disguise the nature and purpose of the corrupt payments, the co-conspirators used coded language to refer to the slush fund and caused the creation of fraudulent contracts and sham loan agreements to justify transfers,” it added.

Bautista has yet to respond to the specific allegations made against him.

Smartmatic earlier said it has placed Piñate and Moreno on leaves of absence “regardless of the veracity of the allegations and while our accused employees remain innocent until proven guilty.”

Vasquez is no longer with the company.

“No voter fraud has been alleged and Smartmatic is not indicted. Voters worldwide must be assured that the elections they participate in are conducted with the utmost integrity and transparency. These are the values that Smartmatic lives by,” the company added.