Calif. Valve Co. Ex-Eagle Pleads Guilty in $1M Bribery Scam

Orange County’s Mario Covino, a former executive at the California Valve Company, has copped to a massive bribery scheme that spanned continents. The 44-year-old Italian national pleaded guilty before a federal court in Santa Ana for his role in funneling $1 million to foreign officials to secure contracts.

Covino, who served as director of worldwide factory sales from 2003 to 2007, admitted to orchestrating the bribes to state-owned enterprises in Brazil, China, India, Korea, Malaysia, and the UAE. The valve manufacturer reaped an estimated $5 million in profits from these deals.

Details emerged that Covino deleted incriminating emails during a company audit, attempting to cover his tracks. His actions were part of a conspiracy to violate the Foreign Corrupt Practices Act (FCPA), a federal statute aimed at eradicating corruption abroad.

The valve company designed and produced service control valves for critical industries like nuclear power and oil and gas. Covino’s guilty plea means he could face up to five years in prison when sentenced on July 20, 2009.

Assistant Chief Hank Bond Walther and Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section, along with Assistant U.S. Attorney Douglas McCormick, handled the prosecution for federal prosecutors. The FBI’s Washington Field Office spearheaded the investigation.

Covino has agreed to cooperate with ongoing investigations as part of his plea deal. His fall from grace serves as a stark reminder of the consequences of ethical lapses in the corporate world.