Valve Exec Admits $1M Bribery Scheme

SANTA ANA, CA – Mario Covino, 44, a former high-ranking executive at an Orange County valve manufacturer, threw in the towel today, admitting to masterminding a $1 million bribery scheme targeting foreign government officials. Covino, an Italian citizen residing in Irvine, pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act (FCPA), a move that could land him behind bars for up to five years.

The feds allege Covino, who served as director of worldwide factory sales from 2003 to 2007, spearheaded the effort to grease palms across the globe. The scheme involved funneling illicit payments to officials at state-owned enterprises in Brazil, China, India, Korea, Malaysia, and the United Arab Emirates, all to secure lucrative contracts for the valve company. The company designs and manufactures valves for critical industries like nuclear power, oil, and gas.

Court documents paint a picture of systematic corruption. Covino admitted to directing employees and agents to pay roughly $1 million in bribes. The payoff wasn’t altruistic; the company reaped a staggering $5 million in profits directly tied to these corrupt deals. Among the entities allegedly receiving kickbacks were Petrobras (Brazil), multiple Chinese power companies including Dingzhou and Datang, and major players in the UAE oil sector like Dolphin Energy and Abu Dhabi Company for Oil Operations.

But the cover-up was as brazen as the bribery itself. Covino confessed to deliberately misleading internal auditors during a 2004 review of commission payments. He also actively deleted incriminating emails and instructed others to do the same, all in a desperate attempt to bury the evidence of his illegal activities. This obstruction of justice charge adds another layer of seriousness to his predicament.

Federal prosecutors are now hoping Covino’s cooperation will unravel a wider network of corruption within the valve company. He’s agreed to assist in the ongoing investigation, likely trading information for a lighter sentence. Assistant Chief Hank Bond Walther and Trial Attorney Andrew Gentin of the Fraud Section, alongside Assistant U.S. Attorney Douglas McCormick, are leading the charge.

The FBI’s Washington Field Office spearheaded the investigation, meticulously piecing together the evidence of international bribery. Covino’s sentencing is scheduled for July 20, 2009, and while a plea deal is likely on the table, the feds are signaling they won’t go easy on someone who profited so handsomely from corrupt practices. This case underscores the global reach of financial crime and the relentless pursuit of those who operate outside the law.