S&W exec indicted

Discussion in 'The Okie Corral' started by magic, Jan 19, 2010.

  1. magic

    magic Mean Old Man

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    http://www.reuters.com/article/idUSN1920007620100119?type=marketsNews

    WASHINGTON, Jan 19 (Reuters) - U.S. authorities accused 22 people, including an executive for Smith & Wesson Holding Corp (SWHC.O), with violating federal bribery laws involving the sale of various arms, the U.S. Justice Department said on Tuesday.

    The indictments charged the individuals, including Smith & Wesson Vice President for Sales Amaro Goncalves, with violating the Foreign Corrupt Practices Act and conspiracy to commit money laundering involving the sale of items including guns and body armor.

    Also charged was the chief executive of Protective Products of America Inc (PPA.TO), R. Patrick Caldwell, who previously worked for the U.S. Secret Service for 27 years and was the special agent in charge of the division for the vice president's protection.

    That company filed for bankruptcy protection last week and sought approval to be acquired by an affiliate of the private investment firm Sun Capital Partners Inc.

    The indictments, filed in December, were unsealed by a U.S. judge on Tuesday and follow undercover operations last year. The individuals were arrested on Monday in Las Vegas and Miami.

    In the case involving Goncalves, an unidentified business associate who was a former executive for an arms manufacturer arranged a meeting between Goncalves and two undercover FBI agents who posed as representatives of an unnamed African country's minister of defense, the indictment stated.

    The agents told Goncalves that in order to win a contract for the sale of guns he would have to add a 20 percent "commission" to price quotes, half of which would go to the purported minister of defense and the rest would be split between the others, according to the indictment.

    Goncalves provided price quotes for two sales, a small one of 25 guns and a larger one with 1,800 pistols. He gave two price quotes for the transactions, including one that had its price inflated by 20 percent, the indictment said. (Reporting by Dan Margolies and Jeremy Pelofsky, editing by Gerald E. McCormick)
     
  2. Sam Spade

    Sam Spade Staff Member Lifetime Member

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    Interesting to see America's official naivete as to how things work in the world overlaid on our daily cynicism.
     

  3. IndyGunFreak

    IndyGunFreak

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    Good, hopefully they go out of business because of it.

    IGF
     
  4. G33

    G33 Frisky! CLM Millennium Member

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    Ah, blame the whole company for a few?
    OK, hope US goes out of business due to Obama.
    :tongueout:
     
  5. BOGE

    BOGE Millennium Member

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    Total BS. For those of you unversed in how the REAL World operates, the bribe is EVERYTHING. That´s how cell phone contracts, construction, etc., are negotiated in the Third World. We may very well not like it, but if you don´t play the game you will go broke. Not only is a bribe accepted in the Third World it is EXPECTED. Welcome to reality.
     
  6. noway

    noway

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    :popcorn:

    btw, I doubt SW is going to go out of business ;)
     
  7. IndyGunFreak

    IndyGunFreak

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    Not the same, America is not a business. America didn't make a shady business deal to save its on tail, while leaving everyone else to hang.

    Obama is only slightly better than *&*. I hope they go bankrupt.

    IGF