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New corruption allegations against voting machine company Smartmatic and its contract with LA county
US government is seeking to show evidence of bribery and money laundering, court filing showsKim Zetter
Wed 20 Aug 2025 17.02 CEST
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The justice department is alleging in a new court filing that three Smartmatic executives who were indicted last year on bribery and money-laundering charges transferred money from a 2018 voting machine contract with Los Angeles county into slush funds that were originally set up to pay bribes to election officials in Venezuela and the Philippines between 2012 and 2016 to obtain and retain lucrative election contracts.
Prosecutors say one of the executives transferred an undisclosed amount from the $282m LA county contract into the slush funds in 2019 but did not say if anyone actually received bribes from the county’s money at that point. The government is seeking to prove the funds were part of a long pattern of bribing election officials by Smartmatic, the voting machine company, which sued Fox News for defamation after the 2020 election.
A separate court filing in a lawsuit brought by Fox News against LA county to obtain records about Smartmatic’s relationship with Dean Logan, LA county’s registrar-recorder and county clerk who oversees elections and the Smartmatic contract, Fox News asserts that Logan may have received inappropriate gifts from the company in the form of business-class travel and upscale restaurant meals. Logan is supposed to report vendor gifts above $50 on annual disclosure forms, but records obtained by Fox News and included in the court filing show he did not report some gifts from Smartmatic. Logan maintains he was not required to report the travel or a meal that Fox highlights in its filing. Fox News is seeking the records from LA county to support its defense against a defamation suit filed against it by Smartmatic in 2021.
Last year, prosecutors in Florida filed corruption charges against the president of UK-based Smartmatic, along with two other current and former executives, for allegedly operating a years-long bribery and money-laundering scheme that paid bribes to an election official in the Philippines. The justice department has since said that the scheme involved payments to officials in Venezuela as well, where the company obtained its first elections contract in 2004.
US election integrity activists have long been concerned about Smartmatic’s contract with LA county, due to the company’s controversial history, the founders’ ties to Venezuela and a lack of transparency over company ownership. The company first tried to get into the US elections market in 2006, but a federal investigation into its ownership and potential ties to the Venezuelan government at the time put a halt to its US ambitions until it obtained the contract with LA county in 2018. Concerns about the company and its role in US elections increased last year when the justice department indicted its executives.
The new revelations about the LA county money raise even more questions about the county’s contract. Prosecutors allege that the Smartmatic executives conspired for years with the owner of Jarltech International, a hardware maker in Taiwan that manufactured voting machines for Smartmatic, to overcharge customers for the systems it built then used the excess money to pay bribes to election officials in the Philippines and Venezuela. Prosecutors do not say if they overcharged LA county as well or if any LA county money actually got paid out in bribes to anyone – only that some of that money made it into slush funds that had been used in the past to pay bribes. The justice department declined to answer questions about the case but said in a court filing that it has documents and witness testimony to support its claims about LA county’s money.
Smartmatic itself has not been accused of wrongdoing, only the three executives. But a Smartmatic spokesperson says the justice department allegations are “filled with misrepresentations” and also says the company operates “ethically” and abides “by all laws always, both in Los Angeles county and every jurisdiction where we operate”.
The new allegations are not part of charges the justice department brought against the Smartmatic executives. Prosecutors are only asking a Florida court to allow evidence about the LA county money to show a pattern in how the executives managed their alleged bribery and money-laundering scheme.
After news of the indictments broke last year, the county barred the three executives from any further association with its Smartmatic contract but did not “debar” the company itself, something it can do if a contractor shows a lack of “business integrity or business honesty”. The county can also terminate a contract if a vendor gives any county officer or employee “improper consideration” in the form of travel, entertainment or tangible gifts to secure favor. But Logan’s office says it stands by its work with the company. With regard to the implication that LA county money that got into the slush funds might have come from overcharging the county, Logan says the county’s contract with Smartmatic uses fixed pricing.
“The alleged actions in the federal matter are unrelated to the work performed under contract by Smartmatic for Los Angeles County,” according to a statement sent by Logan in an email. “The County has no knowledge or visibility into how Smartmatic USA used proceeds from that contract; however, the County does validate work performed and deliverable requirements aligned to the fixed price structure of the contract prior to making any payments.”
The contract runs through March 2027, but has three, two-year extension options that, if exercised, would stretch the agreement to 2033. It also does allow for changes in pricing up to 10% of the contracted amounts.
The three indicted executives include company president and co-founder, Roger Alejandro Piñate Martinez Jr; Jorge Vasquez, former vice-president of hardware development for Smartmatic’s US division; and Elie Moreno, who oversaw the company’s contracts. According to a company bio, Piñate, who goes by Roger Piñate, played a “critical” role in winning the LA county contract and was chief operating officer until becoming president in 2018, the year Smartmatic won the Los Angeles contract.
Piñate is a Venezuelan citizen and permanent US resident, and Elie Moreno is a Venezuelan-Israeli. The company put Piñate and Moreno on administrative leave after the announcement of their indictments last year, and currently Ruliena Piñate, Roger’s cousin, oversees Smartmatic’s LA contract with another employee. She was co-president with her cousin before his indictment. Vasquez, a US citizen, left Smartmatic in 2021 in the midst of the justice department investigation. The justice department accuses him of receiving direct kickbacks for his role in the alleged scheme.
https://www.theguardian.com/us-news/2025/aug/20/smartmatic-voting-machines-bribery
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