Former Pacific Consolidated Industries LP Executive Pleads Guilty to FCPA Anti-Bribery Charges

14 May 2008 Publication

In May 2008, Martin Self, a former executive of Pacific Consolidated Industries LP ("PCI") (a private California based manufacturer of air components), pled guilty to violating the FCPA's anti-bribery provisions in connection with improper payments made to secure contracts with the United Kingdom Ministry of Defense ("UK-MOD"). Pursuant to the plea agreement, Self admitted that he and another PCI employee, Leo Smith, caused PCI to enter into a marketing agreement with a relative of a UK-MOD employee who had influence in awarding UK-MOD contracts. Self admitted that he understood PCI had to enter into the marketing agreement with the relative in order to obtain and retain UK-MOD contracts and that he was not aware of any genuine services provided by the relative. Self also admitted that he deliberately avoided learning the true facts of the marketing agreement and authorized approximately $70,000 in payments to the relative despite being aware of the "high probability" that the payments to the relative were for the benefit of the UK-MOD employee. Self is to be sentenced in September 2008, and the plea agreement contemplates an eight month prison term.  

According to the DOJ, Smith, who was indicted in April 2007 for his role in the improper payment scheme, is scheduled to stand trial in July 2008.


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