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Posts tagged "Department of Justice"

ARMOR HOLDINGS UNABLE TO SHIELD ITSELF FROM FCPA PENALTY: Company to Pay $15+ Million FCPA Penalty

Armor Holdings Inc. has entered into an agreement with the Department of Justice to pay a $10.29 million penalty to resolve violations of the Foreign Corrupt Practices Act (FCPA).  The company manufactured security products, vehicle armor systems, protective equipment and other products primarily for use by military, law enforcement, security and corrections personnel.   On July 31, 2007, Armor was acquired by BAE Systems Inc. and is currently a subsidiary of BAE.  

 

According to the agreement, Armor accepts responsibility for its subsidiary's payment of more than $200,000 in commissions to a third-party sales agent, a portion of which it knew was to be passed on to a U.N. procurement official to induce the official to award two separate U.N. contracts to Armor's subsidiary.   The contracts were for the sale of approximately $6 million of body armor.   Armor also acknowledged that it falsely recorded the commission payments on its books and records.   In addition, Armor admitted that it kept off its books and records approximately $4.4 million in additional payments to agents and other third-party intermediaries used by its Products Group to assist it in obtaining business from foreign government customers.

Armor acknowledged that it failed to devise and maintain an appropriate system of internal accounting controls.

 

In a related matter, Armor reached a settlement today with the U.S. Securities and Exchange Commission (SEC) and agreed to pay more than $5.69 million in disgorgement of profits, including pre-judgment interest, and a civil money penalty.

 

The Justice Department's agreement recognizes Armor's complete voluntary disclosure of the conduct; its internal investigation and cooperation with the department and the SEC; the fact that the conduct took place prior to the acquisition of Armor by BAE; and Armor's extensive remedial efforts undertaken before and after its acquisition by BAE.  Due to Armor's implementation of BAE's due diligence protocols and review processes, its application of BAE's compliance policies and internal controls to all Armor businesses, its extensive remediation and improvement of its compliance systems and internal controls, as well as the enhanced compliance undertakings included in the agreement, Armor is not required to retain a corporate monitor.  

  

SOURCE: DOJ

CRIMINAL'S NAME WAS AN OBVIOUS GIVEAWAY: Hacker Gets 10 Years for Stealing 675,000 Credit Card Numbers - $36 Million in Losses

Rogelio Hackett Jr., 25, of Lithonia, Ga., was sentenced to 120 months in prison for trafficking in counterfeit credit cards and aggravated identity theft.

  

Hackett was also ordered to pay a $100,000 fine.  According to court documents, U.S. Secret Service special agents executing a search warrant in 2009 at Hackett's home found more than 675,000 stolen credit card numbers and related information in his computers and email accounts.   Hackett admitted in a court filing that since at least 2002, he has been trafficking in credit card information he obtained either by hacking into business computer networks and downloading credit card databases, or by purchasing the information from others using the Internet through various "carding forums."   These forums are online discussion groups used by "carders" to traffic in credit card and other personal identifying information.  

 

Hackett also admitted that he sold credit card information, manufactured and sold counterfeit plastic cards, and used the credit card information to acquire gift cards and merchandise.   According to court documents, credit card companies have identified tens of thousands of fraudulent transactions using the card numbers found in Hackett's possession, totaling more than $36 million.  

 

SOURCE: DOJ

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