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David Chalmers Jr, his oil company Bayoil of Texas, and Bayoil Supply & Trading Ltd, based in the Bahamas, face federal criminal charges as part of the scheme to pay millions of dollars in secret kickbacks to Iraq.
The indictment charges that the bribes were paid so the Bayoil companies could sell Iraqi oil under the UN programme.
According to the indictment, Mr Chalmers and his two associates played a "pivotal role" in fixing the price of oil that was traded under the programme and "facilitated payment of illegal surcharges" on the oil to the former Saddam regime.
"These secret payments were illegal kickbacks... to front companies and bank accounts designated and controlled by the Iraqi regime," Mr Kelley said.
"The defendants were essentially diverting funds that otherwise would have been deposited in the oil-for-food escrow account, from which humanitarian aid to the Iraqi people was to be paid," he added.