Salvador A. Dominguez, First Assistant U.S. Attorney
Mary C. Spearing, Chief, Fraud Section, Criminal Division
Richard Chema, Assistant United States Attorney
Peter B. Clark, Deputy Chief, Fraud Section, Criminal Division
David A. Bybee, Trial Attorney, Fraud Section, Criminal Division
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Control Systems Specialist, Inc. ("CSS") was an Ohio corporation having its principal place of business in Fairborn, Ohio. The company was engaged in the purchase, repair, and resale of surplus military equipment. Darrold Richard Crites was the President of CSS.
From about 1994 through about 1996, Crites and CSS entered into an agreement with a civilian employee of the United States Air Force, who worked at Wright Patterson Air Force Base as the Command Country Manager ("Country Manager") for Brazil, and a Lieutenant Colonel of the Brazilian Air Force ("BAF/Lt. Col. Z"), who was authorized to make purchases of military equipment on behalf of the Brazilian Aeronautical Commission ("BAC"), the purchasing agent of the Brazilian Air Force. Crites, CSS, the Country Manager, and BAF/Lt. Col. Z agreed that the Country Manager would locate surplus military equipment for purchase, repair, and resale by CSS to the Brazilian Aeronautical Commission. According to their agreement, BAF/Lt. Col. Z would approve the BAC's purchases from CSS in exchange for payments of money. In total, Crites and CSS paid $99,000 to the Country Manager and a total of $257,139 to BAF/Lt. Col. Z.
On August 19, 1998, the DOJ filed a three count Information against Crites and CSS alleging conspiracy to violate the anti-bribery provisions of the FCPA, direct violation of the anti-bribery provisions of the FCPA, and bribery of a U.S. public official. On October 15, 1998, both Crites and CSS entered into Plea Agreements with the DOJ. Under their separate agreements, both Crites and CSS pleaded guilty to all charges. The court sentenced Crites to 3 years of probation, the first 6 months of which would be served under house arrest and ordered him to pay a madatory assessment of $150. The court sentenced CSS to 1 year of probation and to a fine of $1500 plus a mandatory assessment of $800.
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