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Canadian entrepreneur who blew whistle on Cuban corruption faces 12-year
term
Sarkis Yacoubian, jailed as a `fall guy,' warned Cuban officials about
corruption. He and another Toronto-area man now are caught in a
Havana-Ottawa standoff.
Sarkis Yacoubian, a 53-year-old businessman from North York, is in prison
near Havana awaiting trial on corruption-relatred charges.
By: Julian Sher Investigative News reporter, Juan O. Tamayo El Nuevo
Herald,
Published on Wed May 15 2013
[image: Sarkis Yacoubian, a 53-year-old businessman from North York, is in
prison near Havana awaiting trial on corruption-relatred charges.]
Speaking over a scratchy telephone line from inside a Cuban prison, Sarkis
Yacoubian's voice goes suddenly silent. He's crying.
Behind his muffled sobs, the din of the crowded jail outside of Havana can
be heard.
`I was so depressed at times, I wanted to commit suicide,' says the
53-year-old entrepreneur.
In exclusive jailhouse interviews with the Star from Cuba's La Condesa
prison, Yacoubian provides an insider's view of a sweeping anti-corruption
campaign by the government of Raul Castro that has seen several foreign
businessmen - including himself and another Toronto-area businessman -
jailed.
PhotosView gallery
zoom
A joint investigation by the Star and El Nuevo Herald, the Spanish-language
affiliate of the Miami Herald, has found that in a corruption-plagued
country described in secret U.S. government cables as `a state on the
take,' two jailed entrepreneurs from the GTAare embroiled in a high-stakes
diplomatic and legal standoff between Havana and Ottawa. It potentially
jeopardizes millions in taxpayer dollars that underwrite Canada's trade
with Cuba.
Arrested in July 2011 and detained for nearly two years without charges,
Yacoubian, who ran a transport and trading company, finally was handed a
63-page indictment last month by Cuban authorities accusing him of bribery,
tax evasion and `activities damaging to the economy.'
Yacoubian, a suspect who says he pointed the finger at widespread
wrongdoing by other foreign businesses as well as his own, now faces as
many as 12 years in prison after he pleads guilty at his trial set to begin
next Thursday.
The charges were filed in a special Havana court for Crimes against the
State, which can effectively hold trials in secret.
`They found out this was an epidemic going all over the place and I was the
fall guy,' says Yacoubian. `They want to give an example to the rest of the
businessmen. They want to scare them to death.'
The second GTA man - 73-year-old Cy Tokmakjian, who runs a global
transportation firm called the Tokmakjian Group - was picked up by Cuban
authorities in September 2011 and remains in jail with no specific charges
filed against him.
`We're as worried as anyone would be if their father is in a place where
they shouldn't be,' said his son and company president, Raffi Tokmakjian,
in an interview at their corporate headquarters in Concord, Ont.
Raffi Tokmakjian and his two sisters say they are in daily phone contact
with their father.
`He worries more about us. He says: `You guys stay strong, I'm OK,' ' said
Anni Tokmakjian, the company's director of sales. `We're just focusing on
getting him home, that's all we really care about.'
But that might not be easy. The two Ontario entrepreneurs of Armenian
origin, one-time business associates turned bitter rivals, ran
multimillion-dollar trading companies that sold heavy equipment, vehicles
and supplies to Cuban state companies in the transport, construction,
nickel and other industries.
Today, their Havana offices are shuttered, their fortunes frozen and their
future in limbo.
Cuban authorities in Havana and at the country's embassy in Ottawa declined
to be interviewed for this story. Complicating matters is that millions in
Canadian taxpayer dollars funded by the Canadian Commercial Corporation - a
kind of broker that underwrites contracts between the Cuban government and
select Canadian firms - may be at stake.
>From 2011 to 2012, the corporation signed 38 contracts in Cuba worth more
than $68.4 million, the latest in its $650-million business with Cuba since
1991.
Much of that financial support - for privacy reasons, the agency won't
disclose its client list - went to back deals made the Tokmakjian Group.
Now that Tokmakjian is in prison and the Cuban government has officially
revoked his company's licence to operate, there are questions about what
the Cubans will do if their courts rule that Tokmakjian contracts backed by
the CCC were tainted by corruption.
The Tokmakjian Group is reported to be the second-largest Canadian
operation in Cuba, with at least $80 million in annual sales in the country.
Raffi Tokmakjian says his father `fell in love with the place' when he
began investing in Cuba during the 1960s. Yacoubian, too, had big dreams
when he first came to Cuba in 1993. He quickly became fluent in Spanish
and, after working briefly for Tokmakjian, he built his company, Tri-Star
Caribbean, into a flourishing $30-million-a-year enterprise.
It all came crashing down when plainclothes security officers swept into
his offices in Havana in July 2011. `They started yelling: `Nobody move!' '
Yacoubian says. `I didn't know what was happening.'
Eventually whisked away to a `safe house' for questioning and allowed
outside for only one hour a day, Yacoubian says he slipped into desperation
and depression.
`I had lost my mind,' he says. `I was talking to myself, banging my head.'
Then Yacoubian made a fateful choice: he blew the whistle. `Maybe in my
conscience I wanted my company to be brought down so that I could tell once
for all things that are going on,' he says. `It was just eating me alive.'
He told his interrogators that he had little choice but to hand over money
to bureaucrats or officials to secure contracts or even to ensure they were
honoured after winning a bid.
`If I didn't pay, at the end of the day they would just create problems for
me,' he says.
Prosecutors allege in their court filing that Yacoubian or his employees
bribed at least a dozen state officials with everything from nice dinners
and prepaid phone cards to cash - from $300 for a tip about a contract, to
$50,000 for a 2008 deal on earth movers.
Yacoubian disputes many of the details in the charges. But he says what
bothered him was that some of the foreign businessmen were `bigger crooks'
than the Cubans, profiting unduly from shady business dealings - often, he
says, with support or subsidies from Western governments.
Yacoubian says he spent the next few months turning what could have been a
police grilling of him into a kind of Corruption 101 class for his
interrogators.
`I tried to explain to them systematically how things could be done,' he
says. `I gave them drawings, designs. I gave them names, people, how they
do it, why, when, where, what.'
Yacoubian did not know that his tell-all tale would become fodder for a
campaign against corruption led by President Raul Castro.
Reuters reported in February 2012 that Yacoubian's videotaped confession
was the centrepiece in a video titled `Metastasis' that describes payoffs
and bribes `spreading like cancer' into high levels of the Cuban government.
In the video, shown only to top government and Communist Party officials,
`Yacoubian confesses he passed packets of money to Cuban officials,'
Reuters reports. Tokmakjian is also featured and accused of corruption.
At least two of the Cuban officials tied to Tokmakjian in the video have
been arrested.
But his children say Tokmakjian firmly denies any wrongdoing, insisting
there have been yearly audits of their business partnerships with the
Cubans with `no issues.'
`The only thing that I have heard my father preach is: keep your nose clean
in Cuba and you can do business here for a long time,' says Raffi
Tokmakjian.
As the video was making rounds, Tokmakjian and Yacoubian were eventually
transferred to La Condesa, a prison reserved for foreigners and disgraced
government officials - although the Canadians have been kept apart in
separate barracks.
Bishop Bagrat Galstanian, the Primate of the Diocese of the Armenian Church
of Canada who got to know Yacoubian and his family because of their charity
work in the community, flew to Havana last fall to visit the prison.
`It was kind of unbelievable that would happen to Sarkis, he was very much
in love with Cuba,' the bishop says. `He cried, he opened his heart. He
told me: `This is what I have done for years and now they are trying to
convict me as a traitor to this country.' '
The families of both men say they have received support from the Canadian
Embassy in Havana and assurances that Foreign Minister John Baird and
Minister of State of Foreign Affairs Diane Ablonczy have pushed the Cubans
`at the highest levels' to provide justice for the jailed Canadians `in a
more timely matter.'
Canada is one of Cuba's largest trading partners and its single largest
source of tourism revenue. Close observers of Canadian business and
political affairs in Havana say Ottawa and the CCC have to be concerned
when a major player like Tokmakjian, backed by federal money, runs afoul of
the Castro regime.
One longtime Canadian investor with many years of experience in Havana said
`a lot of people' were frustrated that CCC was an exclusive club The
investor, who asked to remain anonymous because of the uncertain political
climate there, said most of CCC's money was being `eaten up by a handful of
companies,' including the Tokmakjian Group.
Last month, the Cuban government's Official Gazette announced that the
Ministry of Foreign Commerce and Investment had revoked the licence of the
Tokmakjian Group because it carried out `activities . . . contrary to the
(proper) principles and ethics' - in effect, slamming the door shut on
a
major Canadian corporation endorsed by a federal Crown corporation.
For now, the CCC says it is not worried. `The corporation has consistently
been paid by the Government of Cuba on time regardless of the external
environment,' says Joanne Lostracco, the CCC's manager of government
relations.
Asked about the perils of a Crown corporation operating in a Cuban economy
tainted by corruption, Lostracco said the CCC has a `strong due diligence
process' that imposes `full financial disclosure' on Canadian companies and
allows the CCC to withdraw from any contract `obtained through illicit
means.'
The Tokmakjian children remain optimistic their father will be home soon,
taking heart from the fact that 10 other foreign employees of their company
who were detained by Cuban authorities have been released during the past
four months.
For his part, Yacoubian says he hopes to get a reduced sentence after he
pleads guilty at his trial next week `because I collaborated closely'
- a
collaboration acknowledged by Cuban authorities in his indictment.
Yacoubian takes anti-depressants during the day and sleeping pills at
night, but he says the poor ventilation in the stifling heat and the lack
of chairs for his bad back are taking a toll.
Reflecting on the role he has played in unravelling Cuba's corruption
scandals, he has mixed emotions. `It's a victory because now how things
were done has been unwrapped,' he says.
But he also recalls the lyrics from a rock song that was popular when he
and his family lived through the difficult years of civil war in Lebanon:
`Don't be a hero,' Yacoubian says. `Heroes are so sad.'
http://www.thestar.com/news/world/2013/05/15/canadian_entrepreneur_who_blew_whistle_on_cuban_co rruption_faces_12year_term.html
term
Sarkis Yacoubian, jailed as a `fall guy,' warned Cuban officials about
corruption. He and another Toronto-area man now are caught in a
Havana-Ottawa standoff.
Sarkis Yacoubian, a 53-year-old businessman from North York, is in prison
near Havana awaiting trial on corruption-relatred charges.
By: Julian Sher Investigative News reporter, Juan O. Tamayo El Nuevo
Herald,
Published on Wed May 15 2013
[image: Sarkis Yacoubian, a 53-year-old businessman from North York, is in
prison near Havana awaiting trial on corruption-relatred charges.]
Speaking over a scratchy telephone line from inside a Cuban prison, Sarkis
Yacoubian's voice goes suddenly silent. He's crying.
Behind his muffled sobs, the din of the crowded jail outside of Havana can
be heard.
`I was so depressed at times, I wanted to commit suicide,' says the
53-year-old entrepreneur.
In exclusive jailhouse interviews with the Star from Cuba's La Condesa
prison, Yacoubian provides an insider's view of a sweeping anti-corruption
campaign by the government of Raul Castro that has seen several foreign
businessmen - including himself and another Toronto-area businessman -
jailed.
PhotosView gallery
zoom
A joint investigation by the Star and El Nuevo Herald, the Spanish-language
affiliate of the Miami Herald, has found that in a corruption-plagued
country described in secret U.S. government cables as `a state on the
take,' two jailed entrepreneurs from the GTAare embroiled in a high-stakes
diplomatic and legal standoff between Havana and Ottawa. It potentially
jeopardizes millions in taxpayer dollars that underwrite Canada's trade
with Cuba.
Arrested in July 2011 and detained for nearly two years without charges,
Yacoubian, who ran a transport and trading company, finally was handed a
63-page indictment last month by Cuban authorities accusing him of bribery,
tax evasion and `activities damaging to the economy.'
Yacoubian, a suspect who says he pointed the finger at widespread
wrongdoing by other foreign businesses as well as his own, now faces as
many as 12 years in prison after he pleads guilty at his trial set to begin
next Thursday.
The charges were filed in a special Havana court for Crimes against the
State, which can effectively hold trials in secret.
`They found out this was an epidemic going all over the place and I was the
fall guy,' says Yacoubian. `They want to give an example to the rest of the
businessmen. They want to scare them to death.'
The second GTA man - 73-year-old Cy Tokmakjian, who runs a global
transportation firm called the Tokmakjian Group - was picked up by Cuban
authorities in September 2011 and remains in jail with no specific charges
filed against him.
`We're as worried as anyone would be if their father is in a place where
they shouldn't be,' said his son and company president, Raffi Tokmakjian,
in an interview at their corporate headquarters in Concord, Ont.
Raffi Tokmakjian and his two sisters say they are in daily phone contact
with their father.
`He worries more about us. He says: `You guys stay strong, I'm OK,' ' said
Anni Tokmakjian, the company's director of sales. `We're just focusing on
getting him home, that's all we really care about.'
But that might not be easy. The two Ontario entrepreneurs of Armenian
origin, one-time business associates turned bitter rivals, ran
multimillion-dollar trading companies that sold heavy equipment, vehicles
and supplies to Cuban state companies in the transport, construction,
nickel and other industries.
Today, their Havana offices are shuttered, their fortunes frozen and their
future in limbo.
Cuban authorities in Havana and at the country's embassy in Ottawa declined
to be interviewed for this story. Complicating matters is that millions in
Canadian taxpayer dollars funded by the Canadian Commercial Corporation - a
kind of broker that underwrites contracts between the Cuban government and
select Canadian firms - may be at stake.
>From 2011 to 2012, the corporation signed 38 contracts in Cuba worth more
than $68.4 million, the latest in its $650-million business with Cuba since
1991.
Much of that financial support - for privacy reasons, the agency won't
disclose its client list - went to back deals made the Tokmakjian Group.
Now that Tokmakjian is in prison and the Cuban government has officially
revoked his company's licence to operate, there are questions about what
the Cubans will do if their courts rule that Tokmakjian contracts backed by
the CCC were tainted by corruption.
The Tokmakjian Group is reported to be the second-largest Canadian
operation in Cuba, with at least $80 million in annual sales in the country.
Raffi Tokmakjian says his father `fell in love with the place' when he
began investing in Cuba during the 1960s. Yacoubian, too, had big dreams
when he first came to Cuba in 1993. He quickly became fluent in Spanish
and, after working briefly for Tokmakjian, he built his company, Tri-Star
Caribbean, into a flourishing $30-million-a-year enterprise.
It all came crashing down when plainclothes security officers swept into
his offices in Havana in July 2011. `They started yelling: `Nobody move!' '
Yacoubian says. `I didn't know what was happening.'
Eventually whisked away to a `safe house' for questioning and allowed
outside for only one hour a day, Yacoubian says he slipped into desperation
and depression.
`I had lost my mind,' he says. `I was talking to myself, banging my head.'
Then Yacoubian made a fateful choice: he blew the whistle. `Maybe in my
conscience I wanted my company to be brought down so that I could tell once
for all things that are going on,' he says. `It was just eating me alive.'
He told his interrogators that he had little choice but to hand over money
to bureaucrats or officials to secure contracts or even to ensure they were
honoured after winning a bid.
`If I didn't pay, at the end of the day they would just create problems for
me,' he says.
Prosecutors allege in their court filing that Yacoubian or his employees
bribed at least a dozen state officials with everything from nice dinners
and prepaid phone cards to cash - from $300 for a tip about a contract, to
$50,000 for a 2008 deal on earth movers.
Yacoubian disputes many of the details in the charges. But he says what
bothered him was that some of the foreign businessmen were `bigger crooks'
than the Cubans, profiting unduly from shady business dealings - often, he
says, with support or subsidies from Western governments.
Yacoubian says he spent the next few months turning what could have been a
police grilling of him into a kind of Corruption 101 class for his
interrogators.
`I tried to explain to them systematically how things could be done,' he
says. `I gave them drawings, designs. I gave them names, people, how they
do it, why, when, where, what.'
Yacoubian did not know that his tell-all tale would become fodder for a
campaign against corruption led by President Raul Castro.
Reuters reported in February 2012 that Yacoubian's videotaped confession
was the centrepiece in a video titled `Metastasis' that describes payoffs
and bribes `spreading like cancer' into high levels of the Cuban government.
In the video, shown only to top government and Communist Party officials,
`Yacoubian confesses he passed packets of money to Cuban officials,'
Reuters reports. Tokmakjian is also featured and accused of corruption.
At least two of the Cuban officials tied to Tokmakjian in the video have
been arrested.
But his children say Tokmakjian firmly denies any wrongdoing, insisting
there have been yearly audits of their business partnerships with the
Cubans with `no issues.'
`The only thing that I have heard my father preach is: keep your nose clean
in Cuba and you can do business here for a long time,' says Raffi
Tokmakjian.
As the video was making rounds, Tokmakjian and Yacoubian were eventually
transferred to La Condesa, a prison reserved for foreigners and disgraced
government officials - although the Canadians have been kept apart in
separate barracks.
Bishop Bagrat Galstanian, the Primate of the Diocese of the Armenian Church
of Canada who got to know Yacoubian and his family because of their charity
work in the community, flew to Havana last fall to visit the prison.
`It was kind of unbelievable that would happen to Sarkis, he was very much
in love with Cuba,' the bishop says. `He cried, he opened his heart. He
told me: `This is what I have done for years and now they are trying to
convict me as a traitor to this country.' '
The families of both men say they have received support from the Canadian
Embassy in Havana and assurances that Foreign Minister John Baird and
Minister of State of Foreign Affairs Diane Ablonczy have pushed the Cubans
`at the highest levels' to provide justice for the jailed Canadians `in a
more timely matter.'
Canada is one of Cuba's largest trading partners and its single largest
source of tourism revenue. Close observers of Canadian business and
political affairs in Havana say Ottawa and the CCC have to be concerned
when a major player like Tokmakjian, backed by federal money, runs afoul of
the Castro regime.
One longtime Canadian investor with many years of experience in Havana said
`a lot of people' were frustrated that CCC was an exclusive club The
investor, who asked to remain anonymous because of the uncertain political
climate there, said most of CCC's money was being `eaten up by a handful of
companies,' including the Tokmakjian Group.
Last month, the Cuban government's Official Gazette announced that the
Ministry of Foreign Commerce and Investment had revoked the licence of the
Tokmakjian Group because it carried out `activities . . . contrary to the
(proper) principles and ethics' - in effect, slamming the door shut on
a
major Canadian corporation endorsed by a federal Crown corporation.
For now, the CCC says it is not worried. `The corporation has consistently
been paid by the Government of Cuba on time regardless of the external
environment,' says Joanne Lostracco, the CCC's manager of government
relations.
Asked about the perils of a Crown corporation operating in a Cuban economy
tainted by corruption, Lostracco said the CCC has a `strong due diligence
process' that imposes `full financial disclosure' on Canadian companies and
allows the CCC to withdraw from any contract `obtained through illicit
means.'
The Tokmakjian children remain optimistic their father will be home soon,
taking heart from the fact that 10 other foreign employees of their company
who were detained by Cuban authorities have been released during the past
four months.
For his part, Yacoubian says he hopes to get a reduced sentence after he
pleads guilty at his trial next week `because I collaborated closely'
- a
collaboration acknowledged by Cuban authorities in his indictment.
Yacoubian takes anti-depressants during the day and sleeping pills at
night, but he says the poor ventilation in the stifling heat and the lack
of chairs for his bad back are taking a toll.
Reflecting on the role he has played in unravelling Cuba's corruption
scandals, he has mixed emotions. `It's a victory because now how things
were done has been unwrapped,' he says.
But he also recalls the lyrics from a rock song that was popular when he
and his family lived through the difficult years of civil war in Lebanon:
`Don't be a hero,' Yacoubian says. `Heroes are so sad.'
http://www.thestar.com/news/world/2013/05/15/canadian_entrepreneur_who_blew_whistle_on_cuban_co rruption_faces_12year_term.html