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FCPA Blog Daily News

« Four charged in U.K. for Nigeria bribes | Main | Wal-Mart's lastest FCPA disclosure (December 2012) »
Tuesday
Dec182012

CCI's Edmonds sentenced to four months in prison

David Edmonds, a former vice president of California-based Control Components Inc., was jailed for four months at his sentencing Monday for violating the FCPA, followed by four months of home confinement.

He was also ordered to pay a $20,000 fine.

Prosecutors had asked for a 14-month prison sentence.

Edmonds, 60, pleaded guilty in June to one count of making a corrupt payment to a foreign official in Greece in 2003.

He was originally indicted on 16 FCPA-related counts. FCPA offenses are punishable by up to five years in prison.

Under Edmonds' plea deal, he faced up to 15 months in prison.

*     *     *

His former employer, CCI, designs and manufactures service control valves for use in the nuclear, oil and gas, and power generation industries worldwide.

The company pleaded guilty in 2009 to a three-count criminal information charging it with conspiracy to violate the FCPA and the Travel Act, and two substantive violations of the FCPA. It paid an $18.2 million criminal fine and retained a compliance monitor for three years.

CCI admitted that from 2003 through 2007, it made corrupt payments in more than 30 countries that generated sales worth $46.5 million in profit.

*     *     *

Last month, CCI's former CEO, Stuart Carson, was also sentenced to four months in prison and fined $20,000.

Carson, 72, pleaded guilty to one count of violating the FCPA. He had faced up to ten months under his plea agreement. He was ordered to serve eight months of home detention after finishing his prison term.

His wife, Hong Rose Carson, 48, the former sales director for CCI who also pleaded guilty to one FCPA count, was sentenced to six months home confinement, fined $20,000, and ordered to perform 200 hours of community service.

*     *     *

In May, Edmonds' co-defendant, Paul Cosgrove, 65, the former head of global sales at CCI, was given 200 hours of community service but no jail time.

While awaiting trial, Cosgrove had quadruple bypass heart surgery and was hospitalized several times with heart issues.

Cosgrove had pleaded guilty to one count of violating the FCPA. He admitted authorizing bribes to employees at a Chinese state-owned facility to win business for CCI.

*     *     *

Judge James V. Selna has presided over the sentencing of the CCI defendants in federal court in Santa Ana, California.

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