Control Components Inc. Pleads Guilty to FCPA Violations

The DOJ announced on Friday that Control Components Inc., a California-based company, has pleaded guilty to violations of the Foreign Corrupt Practices Act “in a decade-long scheme to secure contracts in approximately 36 countries by paying bribes to officials and employees of various foreign state-owned companies as well as foreign and domestic private companies.”

As part of the plea agreement, CCI agreed to:

  • pay a criminal fine of $18.2 million;
  • create, implement and maintain a comprehensive anti-bribery compliance program;
  • retain an independent compliance monitor for a three-year period to review the design and implementation of CCI’s anti-bribery compliance program and to make periodic reports to CCI and the Department of Justice;
  • serve a three-year term of organizational probation;
  • and continue to cooperate with the Department of Justice in its ongoing investigation.

The DOJ alleged that CCI violated the FCPA by paying approximately $4.9 million in bribes to numerous officers and employees of state-owned and privately-owned customers around the world, including in China, Korea, Malaysia and the United Arab Emirates, for the purpose of obtaining or retaining business for CCI.   The DOJ announced that CCI has admitted that from 2003 through 2007, it made approximately 236 corrupt payments in more than 30 countries, which resulted in net profits to the company of approximately $46.5 million from sales related to those corrupt payments.

Read the DOJ announcement