DOJ charges six former valve company officials with bribery conspiracy

The US Department of Justice charged six former executives of a Southern California valve manufacturer in connection with a conspiracy to bribe foreign government officials to secure contracts, DOJ officials said.

The US Department of Justice charged six former executives of a Southern California valve manufacturer in connection with a conspiracy to bribe foreign government officials to secure contracts, DOJ officials said on Apr. 8.

They said that the contracts resulted in $46.5 million of profits for the company, which was not identified beyond being based in Orange County, Calif. The indictment said that the six defendants, including the company's former chief executive, its former worldwide sales director and former worldwide customer service director and three regional sales directors, were involved in the alleged bribery conspiracy from 1998 through 2007.

It said that payments were made to officials of China Petroleum Materials and Equipment Corp., PetroChina, China National Offshore Oil Corp., the Malaysian national oil company Petronas, and National Petroleum Construction Co., which is based in the United Arab Emirates, as well as to several electricity and nuclear power firms in violation of the Foreign Corrupt Practices Act.

Named in the indictment were former chief executive Stuart Carson, former worldwide sales director Paul Cosgrove, former worldwide customer service director David Edmonds, and former regional sales directors Hong (Rose) Carson (China and Taiwan), Han Yong Kim (Korea) and Flavio Ricotti (Europe, Africa and the Middle East).

The six defendants and others allegedly caused the valve company to make 236 corrupt payments in more than 30 countries from 2003 through 2007, according to the indictment. Two other former officials of the valve company previously pleaded guilty in related cases, DOJ said.

Contact Nick Snow at nicks@pennwell.com

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