Control Components Inc., a valve manufacturer based in Rancho Santa Margarita, Calif., pleaded guilty to federal bribery charges and agreed to pay an $18.2 million criminal fine, the US Department of Justice said.
It said that the company entered guilty pleas to a three-part criminal information before US District Judge James V. Selna in the Santa Ana division of California’s Central District on July 31. As part of its plea agreement, CCI also agreed to create, implement and maintain a comprehensive anti-bribery program; retain an independent compliance monitor for three years to review the design and compliance of that program and periodically report to DOJ and CCI; serve three years of organizational probation, and continue to cooperate with DOJ in its ongoing investigation.
CCI designs and manufactures service control valves for oil and gas, nuclear, and power generation customers. According to the information and plea agreement, from 1998 through 2007, CCI violated the Foreign Corrupt Practices Act and the Travel Act by bribing numerous officers and employees of national and privately-owned customers in China, Korea, Malaysia, the United Arab Emirates, and other countries to obtain or retain business.
DOJ said that CCI made the alleged bribes to foreign officials at China Petroleum Materials and Equipment Corp., PetroChina, China National Offshore Oil Corp., and other state-owned companies in China; Petronas, Malaysia’s national oil company; National Petroleum Construction Co. in the UAE, and Korea Hydro and Nuclear Power.
In total, CCI admitted that from 2003 through 2007, it made some 236 corrupt payments in more than 30 countries, which resulted in approximately $46.5 million of net profits to the company from sales related to those bribes, according to DOJ.
It said that two former executives previously pleaded guilty to conspiring to bribe officers and employees of foreign state-owned companies on CCI’s behalf, and are scheduled to be sentenced on Jan. 25, 2010. Six other former CCI executives were charged in a 16-count indictment with violating the FCPA, Travel Act, and other statutes, and are scheduled to stand trial on Dec. 8.
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