Control Components Inc., a Rancho Santa Margarita-based company, has pleaded guilty to violations of the Foreign Corrupt Practices Act (FCPA) and the Travel Act in a decade-long scheme to secure contracts in approximately 36 countries.
The company, which designs and manufactures service control valves for use in the nuclear, oil and gas, and power generation industries, entered a guilty plea to a three-count criminal information before U.S. District Judge James V. Selna in the Central District of California, Santa Ana Division.
As part of the plea agreement, Control Components Inc. agreed to pay a criminal fine of $18.2 million; create, implement and maintain a comprehensive anti-bribery compliance program; retain an independent compliance monitor for a three-year period to review the design and implementation of the company’s anti-bribery compliance program and to make periodic reports to the government; serve a three-year term of organizational probation; and continue to cooperate with the government in its ongoing investigation.
Federal authorities allege that from 1998 through 2007, Control Components Inc. paid approximately $4.9 million in bribes to officials of various foreign state-owned companies and approximately $1.95 million in bribes to officers and employees of foreign and domestic privately-owned companies in China, Korea, Malaysia, and the United Arab Emirates.
Two former executives of Control Components Inc. have previously pleaded guilty to conspiring to bribe officers and employees of foreign state-owned companies on behalf of the valve company. Mario Covino, the company’s former director of worldwide factory sales, pleaded guilty on January 8, 2009, to one count of conspiracy to violate the FCPA and admitted to causing the payment of approximately $1 million in bribes to officers and employees of several foreign state-owned companies. Richard Morlok, the company’s former finance director, pleaded guilty on February 3, 2009, to one count of conspiracy to violate the FCPA and admitted to causing the payment of approximately $628,000 in bribes to officers and employees of several foreign state-owned companies.
Control Components Inc. was ordered to pay an $18.2 million criminal fine, placed on organizational probation for three years, and ordered to create and implement a compliance program and retain an independent compliance monitor for three years.
Defendant: Control Components Inc.
Criminal Charges: Violations of the Foreign Corrupt Practices Act (FCPA) and the Travel Act
City and State: Rancho Santa Margarita, California
Exact Date: 2007
Sentence: $18.2 million fine, three-year term of organizational probation, and creation and implementation of a compliance program and retention of an independent compliance monitor for three years
Dollar Amounts: $4.9 million in bribes to foreign state-owned companies, $1.95 million in bribes to privately-owned companies, and $18.2 million fine
Control Components Inc. is a Rancho Santa Margarita, California-based company that designs and manufactures service control valves for use in the nuclear, oil and gas, and power generation industries.
Related Federal Cases
- David Hobart Payne, Bribery, California 2024 · Ohio
- Bruce Isackson, College Admissions Bribery, California 2023 · California
- Tamara Yvonne Motley, Medicare Fraud, California 2023 · Illinois
- Sara Jacqueline King, Investor Fraud, California 2023 · Florida
- Amadou Kane Diallo, Wire Fraud, California 2023 · Illinois
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
