Settlements

ST-126
Control Systems Specialists, Inc.
Control Systems Specialists, Inc.
United States
Department of Justice
Brazil
1998
10/15
Unknown
Legal Person
Criminal
Guilty Plea
Criminal Fine
$1,500.00
$1,500
$0
Art.15, Art.16, Art.26
Art. 1, Art. 2
Conspiracy to bribe foreign officials; Bribery of foreign officials, Bribery of US officials
Conspiracy to bribe foreign officials; Bribery of foreign officials, Bribery of US officials
Yes
According to the June 2011 US Report to the OECD on the Enforcement of the Anti-Bribery Convention, "On August 19, 1998, the Department of Justice filed a three-count information against Control Systems Specialist, Inc. (CSS) and its President, Darrold Richard Crites, charging both with conspiring to bribe foreign officials, as well as bribing both foreign and U.S. public officials. CSS, an Ohio corporation, was engaged in the business of buying and repairing surplus military equipment for resale. According to court documents, in 1994, CSS and Crites bid on a contract to supply refurbished military equipment to the Brazilian Aeronautical Commission. In order to win this contract, between November 1994 and December 1995, CSS and Crites made more than 21 bribe payments to a Brazilian Air Force Lt. Colonel, who was authorized to purchase military equipment on behalf of the Brazilian government. These bribe payments ultimately totaled more than $250,000. In addition, CSS and Crites paid approximately $66,000 to a U.S. Air Force officer to provide CSS with confidential information that helped the contracts with the Brazilian government. As a result of these bribe payments, CSS was awarded the contract with the Brazilian Air Force, which was ultimately worth more than $670,000. Criminal Disposition: CSS and Crites each pleaded guilty before Judge Walter H. Rice on October 15, 1998, and were subsequently sentenced on March 8, 1999. Defendant Crites was sentenced to 3 years' probation, including 6 months' home confinement. CSS was fined $1,500." (Source: US Report to the Organisation for Economic Co-operation and Development, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," Information as of May 31, 2011, Control Systems Specialist, Inc. Case at 134.). According to the Court Docket Report, the fine was $500 per each count. (Source: US v. Control Systems Specialist, Inc. and Darrold Richard Crites, Case No. 3:98-cr-073 (S.D. Ohio), Court Docket Report accessed at http://fcpa.shearman.com/files/6dc/6dc8985e0fb5fd5bf9a9385bc162bb79.pdf?i=c5b5c161b6598bf223e61ed0033c2711.