Litton Industries’ Contracts with Greece and Taiwan

Introduction U.S. companies are often perceived to operate in a regulatory atmosphere less tolerant of foreign bribery than their European counterparts. Foreign bribery was criminalized far earlier than in other arms exporting countries, and commission payments must also be disclosed under export regulations. Nonetheless, U.S. firms have used agents in the past to secure business …

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Armor Holdings and the United Nations

Introduction In one of the rare cases where a payer of bribes went to prison, Richard Bistrong, a vice president for international sales at Armor Holdings (acquired by BAE Systems in 2007) admitted in 2010 to paying USD 200,000 to a UN official, via intermediaries, to win contracts for body armor, helmets, and other protective …

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Embraer’s Dominican and Indian Bribery Schemes

Introduction Brazilian company Embraer is best known as a leading producer of regional civil aircraft, but also builds and successfully exports military trainer/light combat and surveillance planes. The company’s global presence includes a U.S. subsidiary and the licensed production of the Embraer Super Tucano in the United States, from where sales are made to the …

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Glenn Defense Marine Asia and the US 7th Fleet (the ‘Fat Leonard’ scandal)

Introduction While high-value military hardware procurement programs feature most prominently as vehicles for corruption in this compendium, less visible but equally critical contracts are also susceptible to graft. A now-four-year scandal stemming from corrupt port services contracts has rocked the U.S. Navy’s Pacific operations, implicating officers and civilians up and down the ranks. Prosecutors determined …

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The Boeing Tanker Case

Introduction The U.S. defense acquisition system’s “revolving door” is legendary, but few cases of officials performing favors in exchange for post-retirement jobs have been successfully prosecuted. In 2004, a senior U.S. Air Force procurement official was arrested in a textbook example of revolving door corruption, landing not only herself but also senior executives from contractor …

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