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Harry Cassin
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Andy Spalding
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Jessica Tillipman
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Bill Steinman
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Richard L. Cassin
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Elizabeth K. Spahn
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Julie DiMauro
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Thomas Fox
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Marc Alain Bohn
Contributing Editor

Bill Waite
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Shruti J. Shah
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Russell A. Stamets
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Richard Bistrong
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Eric Carlson
Contributing Editor

DOJ recommends no jail for three CCI execs

In Marc Alain Bohn’s FCPA Docket yesterday, there was important news about three individuals facing sentencing in the Control Components Inc. case.

On February 1, prosecutors asked the court to sentence Mario Covino, Richard Morlok, and Flavio Ricotti to probation and no jail time.

Prosecutors said they deserve those sentences because of their cooperation in the case.

They’re each scheduled to be sentenced on March 18.

CCI’s former CEO, Stuart Carson, received four months in prison in November last year, and was fined $20,000. He had pleaded guilty to one FCPA count.

His wife, Hong Rose Carson, the former sales director for CCI who also pleaded guilty to one FCPA count, was sentenced to six months home confinement, fined $20,000, and ordered to perform 200 hours of community service.

In 2009, CCI pleaded guilty to violating the FCPA and the Travel Act. It admitted bribing foreign officials in a decade-long scheme to secure contracts in about 36 countries. CCI’s three-year plea agreement imposed a criminal fine of $18.2 million and required appointment of a compliance monitor and cooperation with the DOJ’s investigation.

Paul Cosgrove, the former director of worldwide sales for CCI, was sentenced in September 2012 to 13 months home confinement and fined $20,000 for bribing Chinese officials. He pleaded guilty to one count of violating the FCPA.

In December last year, David Edmonds, a former vice president of CCI, was jailed for four months after a guilty plea, followed by four months of home confinement. He was also ordered to pay a $20,000 fine.

Flavio Ricotti, one of the three to be sentenced in March, is an Italian citizen. He spent 11 months in federal custody following his 2010 arrested in Frankfurt, Germany and extradition to the United States. Prosecutors recommended this month that his sentence be ‘time served,’ with probation.

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