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U.S. v. Control Systems Specialist, Inc. and Darrold Richard Crites

 
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Control Systems Specialist - Control Systems Specialist, Inc.
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DOJ Criminal
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August 19, 1998
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U.S. v. Control Systems Specialist, Inc. and Darrold Richard Crites
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U.S. v. Control Systems Specialist, Inc. and Darrold Richard Crites, No. CR-3-98-073 (S.D. Ohio 1998)
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See also International Material Solutions, where the alleged recipient, Lt. Cl. Z, is the same individual.
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Aerospace/Defense
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Brazil
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1994; 1995; 1996
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Command Country Manager of Brazil (U.S. Air Force); Brazilian Air Force Lt. Colonel
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Control Systems Specialist, Inc. (CSS) isan Ohio corporation that buys and repairs surplus military equipment for resale. Darrold Richard Crites was the President of CSS. Company Y was another Ohio corporation in the business of buying and repairing surplus military equipment for resale. Businessman X was the President of Company Y. Brazilian Air Force Lt. Colonel Z (Colonel Z) was an employee of the Brazilian government who was authorized to purchase military equipment. Command Country Manager for Brazil (Country Manager) was an employee of the U.S. Air Force and his official duties involved the sale of U.S. military equipment to foreign countries. In 1994, CSS and Crites bid on a contract to supply the Brazilian government with repaired military equipment. CSS and Crites agreed to pay bribes to Colonel Z to ensure that they would be selected for the contract. Between November 1994 and December 1995, CSS and Crites issued 21 checks to Colonel Z which approximately totaled $189,576.00. In addition, Crites sought assistance from Businessman X to help make additional payments to Colonel Z. As a result of this solicitation, Businessman X incorporated company Y in 1995, purchased additional repairable military equipment and paid Colonel Z approximately $67,563.00. CSS and Crites also agreed to pay bribes to the Country Manager of Brazil in exchange for information about the location of repairable parts that could be sold to the Brazilian Air Force. Country Manager provided Crites and CSS with this information and in exchange, the Country Manager received $66,000.00. As a result of these bribes, CSS was awarded the contract with the Brazilian Air Force and received approximately $672,298.00 upon performance. In 1998, the U.S. Attorney’s office indicted Crites and CSS for conspiracy to violate the Federal Corrupt Practices Act, violations of the FCPA and bribery of a U.S. public official. Crites pled guilty to all three counts.
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Anti-bribery (Domestic Concern), Conspiracy - Anti-Bribery
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Fine, Plea
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Criminal Fine of $1,500.
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1,500
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0
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It is difficult to explain this sentence under the Sentencing Guidelines and the official record provides little guidance. Pursuant to the Guidelines, assuming a base fine of $257,205 (the total amount of payments to US and foreign officials) and applying the most likely culpablility score of 4 (giving credit for acceptance of responsibility), the fine range would have been $154,323-$413,128. The fine of $1,500 is most likely explained as a reduction for inability to pay under USSG 8C3.3, given that the defendant was essentially a sole proprietorship with few assets whose owner was also convicted but apparently received a departure for substantial assistance. (See entry for Darrold Richard Crites).
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Domestic Concern
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U.S.
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Contract Procurement/Retention
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672,298
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Wire/check
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Direct
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323,139
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United States
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No
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No