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

 
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Control Systems Specialist - Crites, Darrold Richard
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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) is an Ohio corporation that buys and repairs surplus military equipment for resale. Darrold Richard Crites is the President of CSS. Company Y is another Ohio corporation in the business of buying and repairing surplus military equipment for resale. Businessman X is 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 FCPA, 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)
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Plea, Probation
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Complete restitution of all damage that resulted from violations, 6 months of home confinement, 18 months probation, and 150 hours of community service. In addition, Crites' company was sentenced to pay a fine of $1,500 (See entry for Control Systems Specialist).
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Not stated.
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0
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The docket in this matter reflects that the government filed a motion for departure under USSG 5K1.1 recognizing the defendant's substantial assistance in its investigation. Absent that motion, it appears that Crites was exposed to a minimum Guidelines range of 12-18 months imprisonment (based upon the amount of payments).
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Domestic Concern
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President
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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