Settlements

ST-299
Pacific Consolidated Industries LP / Leo Winston Smith
Pacific Consolidated Industries LP
United States
Department of Justice
United Kingdom
2009
09/03
United Kingdom
Individual
Criminal
Guilty Plea
Criminal Fine
$7,500.00
$7,500
$0
Art.16, Art.23
Art. 1, Art. 7, Art. 8
Conspiracy to Bribe Foreign Officials, Conspiracy to Commit Money Laundering, Bribery of Foreign Officials, International Money Laundering, False Statement in a Tax Return
Conspiracy to Bribe Foreign Officials, Conspiracy to Commit Money Laundering, Bribery of Foreign Officials, International Money Laundering, False Statement in a Tax Return
Yes
According to the US Department of Justice Report to Congress, Appendix C "Summaries of Foreign Corrupt Practices Act Enforcement Actions by the United States, January 1, 1998 - September 30, 2010," Pacific Consolidated Industries LP, at 63-64, accessed at www.justice.gov/criminal/fraud/fcpa/docs/response3-appx-c.pdf: Time period of misconduct in United Kingdom, 1993-2003; Martin Eric Self and Leo Winston Smith, two executives of Pacific Consolidated Industries (which later went defunct) caused PCI to enter into a marketing agreement with a person they understood to be a relative of the UK-MOD official/project manager directly involved in the procurement of Air Separation Units (which PCI manufactured) on behalf of the UK-Ministry of Defence. The ASU and related contracts awarded to PCI were valued at over $11 million. The executives were charged with participating in a scheme to make more than $370,000 in illicit payments, and Smith was also charged with failing to report nearly $500,000 in commissions from PCI on his tax returns. Self pleaded guilty and was ordered to pay $7,500 criminal fine; Smith also pleaded guilty and was ordered to pay $20,000 in criminal fine. PCI was a private company. The UK-MOD official pleaded guilty in the UK to accepting more than $300,000 in bribes from PCI and was sentenced to two years in prison. According to the United Kingdom's "Self-assessment checklist on the implementation of the United Nations Convention against Corruption," Ministry of Defence official, Michael Hale, was convicted in April 2007, on nine counts of accepting bribes totalling £217,000. (Source: United Kingdom's "Self-assessment checklist on the implementation of the United Nations Convention against Corruption," September 2008, accessed at www.dfid.gov.uk/documents). The UK's MailOnline (and other media) reported on April 16, 2007 that Michael Hale, a senior military official, had plead guilty in Southwark Crown Court to charges of receiving bribes from Pacific Consolidated Industries. (Source: MailOnline, "Senior MoD jailed for taking bribes from US arms dealer," April 16, 2007, accessed at http://www.dailymail.co.uk/news/article-448968/Senior-MoD-jailed-taking-bribes-US-arms-dealer.html.)