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Published Tuesday, Jan. 19, 2010 | 11:28 a.m.
Updated Tuesday, Jan. 19, 2010 | 12:39 p.m.
The FBI arrested 21 people Monday in Las Vegas in what is being described as the largest single investigation and prosecution against individuals in the history of the Justice Department's enforcement of the Foreign Corrupt Practices Act.
Those individuals and another person arrested in Miami are executives and employees of military and law enforcement products companies who were indicted for engaging in schemes to bribe foreign government officials to obtain and retain business, the Justice Department announced today.
In connection with the FBI's undercover operation, 16 indictments were unsealed today. The indictments were returned on Dec. 11 by a grand jury in Washington.
All 21 of the individuals arrested in Las Vegas had been attending the 2010 Shooting, Hunting, Outdoor Trade Show and Conference, which runs from today through Friday at the Sands Expo & Convention Center. All were arrested off-site at an undisclosed location in the city, federal authorities said at a press conference held in Washington.
"It just happened that we had the opportunity to bring them all together at one time at one place," Kevin Perkins, assistant director of the FBI's criminal division said.
Assistant Attorney General Lanny Breuer of ther Justice Department's Criminal Division said that while Las Vegas is a convention center city, the fact that all the individuals converged on Las Vegas is not a negative reflection of the city. He simply chalked it up to a locale that hosts conventions for a variety of industries.
"As one person said in my office, this is one case where what happens in Vegas doesn't stay in Vegas," Breuer said.
The investigation involved roughly 150 FBI agents who executed search warrants throughout the country. London police also assisted in the investigation.
"The fight to erase foreign bribery from the corporate playbook will not be won overnight, but these actions are a turning point," Breuer said.
U.S. Attorney Channing Phillips, who represents the District of Columbia, added: "Corrupt payments to foreign officials to obtain or retain business erode public confidence in our free market system and threaten to undermine foreign governments."
The indictments allege that the defendants engaged in a scheme to pay bribes to the minister of defense for a country in Africa. The scheme was part of the undercover operation, with no actual involvement from any minister of defense.
As part of the undercover operation, the defendants allegedly agreed to pay a 20 percent commission to a sales agent who the defendants believed represented the minister of defense in order to win a portion of a $15 million deal to outfit the country's presidential guard.
In reality, the sales agent was an undercover FBI agent.
Those who were indicted and the location of their companies included Daniel Alvirez and Lee Allen Tolleson, Bull Shoals, Ark., Helmie Ashiblie, Woodbridge, Va., Andrew Bigelow, Sarasota, Fla., R. Patrick Caldwell and Stephen Gerard Giordanella, Sunrise, Fla., Yochanan Cohen, San Francisco, Haim Geri, North Miami Beach, Fla., Amaro Goncalves, Springfield, Mass., John Gregory Godsey and Mark Frederick Morales, Decatur, Ga., Saul Mishkin, Aventura, Fla., John and Jeana Mushriqui, Upper Darby, Pa., David Painter and Lee Wares, United Kingdom, Pankesh Patel, United Kingdom, Ofer Paz, Israel, Israel Weisler and Michael Sachs, Stearns, Ky., and John Benson Wier III, St. Petersburg, Fla.
The maximum prison sentence for the conspiracy count and for each FCPA count is five years. The maximum sentence for the money laundering conspiracy charge is 20 years in prison.
These cases are being prosecuted by Assistant Chief Hank Bond Walther and Trial Attorney Laura N. Perkins of the Criminal Division’s Fraud Section, and Matthew C. Solomon of the U.S. Attorney’s Office for the District of Columbia. The cases were investigated by the FBI Washington Field Office squad that specializes in investigations into FCPA violations.
"In reality, the sales agent was an undercover FBI agent."
In reality, the FBI has been one of the most criminally corrupt organizations in American history.
: {
Ref:
Frontline: The Secret File on J. Edgar Hoover (02/09/1993)
http://www.pbs.org/wgbh/pages/frontline/...
http://www.youtube.com/watch?v=9jc4NJqQ3...
So the "defense minister" threw a big party in Vegas for his "consultants" and the FBI arressted them en-masse? Is that how it went down?
I guess Obama decided to stimulate the Vegas economy a little. How much did this cost the Feds to set this thing up?
They paid a commission to an independent sales rep ...so what?
NOT GUILTY.
NOT INTELLIGENT. ;)
Judging by the locations, it looks like they went after handgun manufacturers
My defense: Your hounor, I was just doing my part to stimulate the economy and keep my employee's from being laid off. Beside Congress is bribing each other over the health care bill so why shouldn't they?
Hey FOSIMMONS,
Let me get this straight...Woodbridge, VA (a suburb of Washington , D.C.) and Decatur, GA. (a suburb of Atlanta, GA.), two of the largest, most populated cities in this country have an abundance of straw hat, flip-flop wearing, teeth missing, red-necks?
You are the perfect example of the ignorance that diminishes the credibility of any and all media outlets in this country.
I guess it's safe to say that, if you're not on the Vegas strip, you could probably classify yourself as one of this back-wood overall wearing, straw licking, front porch rocking, fly swatting, red necks.
But then again, considering your microscopic level knowledge of geography, I'm going to safely say that you haven't ever left that desert you call home, even to get a second rate education which didn't include counting cards.
Next time, do your research, and post some knowledgeable facts that may stimulate the few brain cells that the lack of proper hydration has left you.
Brand x newspaper's site says "it is not clear why the people were in Las Vegas" gee I thought all the gun-lovers over there knew about the world famous "SHOT SHOW" It is up there with all the big conventions...
How is paying a commission to get a sale illegal?
The FBI really needs to take a close look at the contracts written by the Department of Corrections in Nevada.
or Metro contracts
Amaro Goncalves: VP of sales, Smith and Wesson.
Mr. Pash Patel, United Kingdom--sure. Mr. Patel is undoubtedly claiming he is a citizen of the United Kingdom which is almost non-existent anymore since Mum has been a figure head for many years now.
Smith and Weston were the biggies in the Clinton Administration who was trying to cut "deals" with Mr. President in the Oval Office--that is whenever his zipper was closed.
Sounds like something out of a movie. A group of shady characters conducting corrupt deals in a secret location and the feds come driving 65mph with sirens and lights blaring leaving behind a dust trail to nab the bandits. Life imitating art.
Comment removed by moderator. Comment violated user agreement.
While public corruption is a scourge in many countries, I don't quite see why it'd be illegal for our businessmen to bribe a corrupt offical to make a sale. You can be sure the Europeans, Russians & Chinese (and US Senators, ala the Louisiana Purchase & Cornhusker Kickback) don't have such qualms.
Only in Vegas
Thank goodnes they weren't Mexicans!
tvegas and geezelouise
The minister of defense of a country that is taking bids on a weapons contract is not and cannot be an 'independent' sales rep that is called a BRIBE.
So you are saying... if the good old FBI had not coerced three English business men (and other American citizens too) into a tempting sales deal persuading them to pay the undercover FBI agent a large commission for an introduction into a new market they would not have committed a crime, or felony as they would call it, in the first place. Where's the justice in that?
Your readers' comments seem to think business introductions regularly require introductory commissions. Well don't they? We would like to know what did the FBI agent did promise to do for his money and why, as it would seem it was his idea to deliberately entrap unsuspecting victims in a dubious and underhand way. And had he not done so no crime would have been committed. Is this really legal, moral and fair play? Is this a good use of your money and their time? Come on America play the game properly, catch the real criminals out there.
It's entrapment. Unfortunately, business is conducted much differently in some countries. That's just the way it is.
So, is it possible to secure contracts in third world countries without bribing high government officials? The answer: Almost without exception, NO.
Why doesn't the FBI look for the criminals who endanger our everyday life?
Hey logic_should_rule: You say: Why doesn't the FBI look for the criminals who endanger our everyday life? Well thats because there not allowed to investigate congress.
logic_should_rule: so if the only way to make a business deal is to break a law then than makes it ok? God knows if this was someone with a his panic name you'd all be crying for his or her blood, but since this is a corporation in pursuit of the mighty dollar it is some how ok...
ForThisOneGuy
It looks to me that Alvirez, Morales sound Hispanic as Cohen and Geri could be Jewish while
Painter or Wares might be Cristian. The point is it is not a crime to pay a salesman; as stated in this article a 20 percent commission for making it possible to sell they're wares.
To the idiots who think those executives were paying a commision to a "sales rep", you're all nuts.
They were paying a bribe to what they thought was a minister of defense to an African nation. Yes, that Country is un-named, but wouldn't be one bit surprised if the agent used one that has terrorist ties.
The firearms manufacturers have gotten greedy over the last several decades or so, raising prices to the point to where the average American can no longer afford to buy a gun, that wants one for various personal reasons. I mean the day after Obama got elected, Springfield Armory raised the price of their basic GI Model .45ACP $118.00 overnight, that's not right.
I know many people who are in the security field who cannot get their armed license because even a decent used firearm is priced out of their means. Call it what you want, but this is Capitalism out of control.
Why is Obamas crew doing this when we have big security problems.I was just watching 20 minutes on TV.In Iraq and Afganastan we are finding road side bombs that did not go off and some that did and killed Americans with chips and parts made in America.As we sit here and argue over bull and Obamas boys waste time on bull.American middle men are selling lab equipment that can be used for warfare and have been used to kill Americans.One guy an Iranin was selling parts that can make bombs more powerfull going to Iran via France.Obama waste time with a legal deal.
The U.S. Government commits the same crime on a daily basis by paying criminals to testify on the governments behalf against defendants charged with a crime that would actually begin with an undercover agent trying to entice someone into breaking "their law." This is just another Obama attack against guns and the U.S. Constitution.