Two former executives of IMI Plc (IMI)’s California unit pleaded guilty to paying bribes to foreign government officials after the unit admitted to bribing officials at state-owned companies in China, Malaysia and the United Arab Emirates.
Stuart Carson, 73, the former president of Control Components Inc., and his wife, Hong “Rose” Carson, 48, the company’s director of sales for China and Taiwan, pleaded guilty at a hearing yesterday in federal court in Santa Ana, California.
Stuart Carson faces as long as 10 months in prison and Rose Carson faces three years of probation that may include six months home confinement, according to a U.S. Justice Department statement today. They were among six former Control Components executives charged in April 2009, one of whom pleaded guilty last year.
Nicola Hanna, a lawyer for Stuart Carson, and Kimberly Dunne, a lawyer representing Rose Carson, didn’t immediately return calls to their offices for comment on the guilty pleas.
Control Components, a Rancho Santa Margarita-based maker of control valves used in nuclear, oil and gas power plants, pleaded guilty in 2009 to violating the U.S. Foreign Corrupt Practices Act and the Travel Act. The company was ordered to pay an $18.2 million fine as part of the plea agreement.
Control Components and IMI, based in Birmingham, England, cooperated with the investigation.
The company made about $6.85 million in illegal payments to officials and employees at both state-owned and private companies in 36 countries, according to a court filing. The sales generated by the payments resulted in profits of $46.5 million from 2003 through 2007.
The case is U.S. v. Carson, 09-00077, U.S. District Court, Central District of California (Santa Ana.)
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