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U.S. v. Martin Eric Self

 
:
Pacific Consolidated Industries - Self, Martin Eric
:
DOJ Criminal
:
May 2, 2008
:
U.S. v. Martin Eric Self
:
U.S. v. Martin Eric Self, No. 8:08-cr-110-AG-1 (C.D. Ca. 2008)
:
This case provides insight into the Department's view on what constitutes "willful blindness." As president of the company, defendant failed to investigate the purpose of the corrupt agreement and payments, thereby deliberately avoiding learning the true facts.

In an apparent exercise of prosecutorial discretion, the DOJ has not prosecuted Self's employer, Pacific Consolidated Industries. The DOJ has noted in a press release that the company was acquired by a group of investors that disclosed the conduct, fully cooperated with the government, and terminated involved employees.
:
Aerospace/Defense
:
United Kingdom
:
1999; 2000; 2001; 2002
:
United Kingdom Ministry of Defense official (project manager)
:
Martin Self was the President of Pacific Consolidated Industries ('PCI"), a manufacturer of Air Separation Units ('ASU') and other equipment for defense departments around the world. Leo Winston Smith was the Executive Vice President of Sales and Marketing at PCI. In October 1999, Self and Smith entered into a marketing agreement with the relative of a United Kingdom Ministry of Defense ("UK-MOD") official. Under this agreement, the relative was not obligated to provide any services, but payments would be made by PCI to the relative. The actual purpose of these payments was to obtain contracts with the UK-MOD for ASU spare parts. Beginning in 1999 and continuing until May 2002, Smith wired approximately $70,350 to the relative of the UK-MOD official. As President of PCI, Self failed to investigate the marketing agreement and the purpose of the payments made to the relative. Self also deliberately avoided learning the true facts.

In May 2008, Self pleaded guilty to two counts of bribing a foreign official in violation of the FCPA. In November 2008, Self was fined $20,000 and sentenced to 2 years probation. Smith, who was separately indicted, pled guilty in September 2009.
:
Anti-bribery (Domestic Concern)
:
Fine, Plea, Probation
:
Fine of $20,000 and 24 months probation.
:
20,000
:
0
:
Total Offense Level: 11 (Base Offense of 8; plus 8 for 'More than $70,000 in bribes, but less than $120,000'; minus 3 for Mitigating Role; minus 2 for Acceptance of Responsibility).

Criminal History Category: I

Because Self was not the mastermind of the scheme, the government recommended a sentence on the lower end of the applicable guideline range of 8 to 14 months.
:
Domestic Concern
:
President
:
U.S.
:
Contract Procurement/Retention
:
Not stated.
:
Wire/check
:
Family Member, Sales Agent/Consultant
:
70,350
:
United Kingdom
:
United Kingdom, United States
:
Defendant was aware of a high probability that the payments under a marketing agreement were made for the purpose of obtaining and retaining contracts. Defendant failed to make a reasonable investigation of the true facts and deliberately avoided learning the true facts.
:
No
:
United Kingdom