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FCPA Blog Daily News

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Friday
Jun152012

CCI's Edmonds Pleads Guilty

David Edmonds, the former vice president of worldwide customer service at California-based Control Components Inc. (CCI), pleaded guilty Friday to violating the Foreign Corrupt Practices Act.

He's the seventh former CCI executive to plead guilty to FCPA charges.

Edmonds, 59, entered his plea to a one-count superseding information charging him with making a corrupt payment to a foreign official in Greece. He had been scheduled to face trial later this month on 16 FCPA-related counts.

His sentencing is set for November 12 by Judge James V. Selna in Santa Ana, California. Under his plea deal, he faces up to 15 months in prison. 

*     *     *

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, Paul Cosgrove, 65, CCI’s former head of worldwide sales, pleaded guilty to one count of violating the FCPA. Under his plea deal, Cosgrove also faces up to 15 months in federal prison.

In April, Stuart Carson, 73, CCI’s former president, and his wife, Hong “Rose” Carson, 48, CCI’s former director of sales for China and Taiwan, each pleaded guilty to one count of making a corrupt payment to a foreign government official. Their sentencing is scheduled for October 15. Under their plea deal, Stuart Carson faces up to ten months in prison. His wife Rose will avoid prison but faces up to three years probation with six months of home confinement.

In April 2011, Flavio Ricotti, 52, an Italian citizen who was CCI’s former vice president of sales for Europe, Africa, and the Middle East, pleaded guilty to one count of conspiring to violate the FCPA.

In 2009, Richard Morlok, 58, CCI's former finance director, pleaded guilty to one count of conspiracy to violate the FCPA.

Also in 2009, Mario Covino, 47, an Italian citizen and the former director of worldwide factory sales for CCI, pleaded guilty to one count of conspiracy to violate the FCPA.

Stuart and Rose Carson, Cosgrove, Covino, Morlok, and Ricotti are scheduled to be sentenced later this year.

FCPA charges are pending against a final defendant in the case, Han Yong Kim, the former president of CCI’s Korean office. He hasn't appeared in the U.S. to face trial.

____________

The DOJ's June 15, 2012 release is here.

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