Stuart Carson, Hong Rose Carson, Paul Cosgrove, and David Edmonds were charged with offering bribes to officials

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Stuart Carson, Hong “Rose” Carson, Paul Cosgrove, and David Edmonds were charged with offering bribes to officials of foreign, state-owned companies for the purpose of obtaining or retaining business for their employer, Controlled Components Inc. (CCI). CCI is in the business of manufacturing control valves for use in the nuclear, oil and gas, and power generation industries worldwide. CCI’s customers include state-owned companies in China (China National Offshore Oil Corporation, China Petroleum Materials and Equipment Corporation, Dongfang Electric Corporation, Guohua Electric Power, Jiangsu Nuclear Power Corporation, and PetroChina), Korea (Korea Hydro and Nuclear Power), Malaysia (Petronas), and United Arab Emirates (National Petroleum Construction Company). 


The government alleges that $4.9 million in bribes or “corrupt payments” were made to officers and employees of CCI’s foreign, state-owned customers over a four-year period. The defendants contend that employees of state-owned companies can never be “foreign officials” under the Foreign Corrupt Practices Act (FCPA). Should the charges be dismissed because employees of state-owned companies can never be foreign officials within the context of the FCPA? Explain.

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Law for Business

ISBN: 978-1259722325

13th edition

Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards

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