Guilty Pleas Entered in FCPA Bribery Case

Several recent guilty pleas in a Foreign Corrupt Practices Act (FCPA) case gave prosecutors a “rare victory following a string of defeats in similar bribery investigations,” according to the National Law Journal. The case involved a California-based company, Control Components Inc. (CCI), which designs and manufactures valves for the worldwide nuclear, gas and oil industries. Federal prosecutors charged several of CCI’s executives with paying $4.9 million in bribes to officials in various countries, including China, Malaysia, South Korea and the United Arab Emirates, in order to get contracts for CCI.

The former head of worldwide sales for CCI was the most recent defendant in the case to plead guilty to violating the FCPA. The 65-year-old executive faces up to 15 years in federal prison after pleading guilty to a single charge of making a corrupt payment to a foreign government official in China. He was originally charged with 16 counts of violating, and conspiring to violate, the FCPA and the Travel Act. If, instead of making a plea deal, he had gone to trial, he could have been sentenced for up to five years for each of those 16 counts.

Five other former executives have also pleaded guilty in the case. Two other defendants have been charged, but haven’t yet gone to trial. In 2009, the company itself pleaded guilty, admitting it had bribed foreign officials over a ten-year period in an attempt to win contracts in 36 countries. The company paid $18.2 million in criminal fines.

WeComply’s 35-minute Foreign Corrupt Practices Act training course explains essential aspects of the FCPA, and WeComply's Global Anti-Corruption course explains global anti-corruption measures in an interactive, easily understood format. 

Categories: International Compliance
Tags: fcpa