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U.S. v. F.G. Mason Engineering, Inc. and Francis G. Mason

 
:
F. G. Mason - Mason, Francis G.
:
DOJ Criminal
:
June 1, 1990
:
U.S. v. F.G. Mason Engineering, Inc. and Francis G. Mason
:
U.S. v. F.G. Mason Eng'g, Inc. and Francis G. Mason, No. 90-0029 (D. Conn. 1990)
:
The bribery scheme involved paying kickbacks to an official of the West German Military Intelligence Service (known by the acronym MAD) to secure a procurement contract with MAD. The prices of the contract and related services were artificially inflated. Accordingly, the corporate defendant was ordered to make restitution of $160,000 to the German government in form of credit on existing contracts. In addition, Mason was ordered to cooperate with the German government in connection with the proceedings against the corrupt MAD official.
:
Telecommunications-Other/Multi
:
Germany
:
1983; 1984; 1985; 1986; 1987; 1988; 1989
:
Procurement official for foreign military intelligence agency.
:
Francis Mason is the founder, sole-owner, and President of Mason Engineering, Inc. (MEI), a Connecticut corporation that manufactures, develops, and sells technical security countermeasure (TSCM) equipment, or "anti-bugging" devices used to detect the presence of electronic surveillance. MEI started selling TSCM equipment and related products to the German military intelligence service (known as "MAD"), since the 1960s. The sales were made through a middleman from the mid 1970s.

In or around April 1983, Dirk Ekkehard Zoeller, an officer of MAD, contacted Mason seeking to eliminate the middleman. Zoeller was responsible for procurement, testing, inspection and acceptance of TSCM equipment on behalf of MAD. On July 13, 1984, Mason executed a written contract with Zoeller on behalf of MEI, which provided that MEI would pay Zoeller a 13.3% commission on every sale of MEI equipment to MAD. Three years later, Zoeller and Mason also agreed that MAD would grant exclusive "general alignment" service contracts to MEI in exchange for a 50-50 fee split.

Over a period of five years, Zoeller granted MEI over $1.4 million in equipment and service contracts and received over $225,000 in return. During the course of the conspiracy, Zoeller also provided information and guidance on the amount MEI should charge to MAD for its equipment and services. MEI used this information to artificially inflate its prices to MAD.

MEI and Mason both pleaded guilty to a single count of conspiracy to violate the FCPA.
:
Conspiracy - Anti-Bribery
:
Fine, Plea, Probation
:
Joint criminal fine of $75,000 assessed against Mason and F.G. Mason Engineering, Inc., special assessment of $50 against Mason, and 5 years of probation.
:
75,050
:
0
:
Officer of Domestic Concern
:
Founder, President
:
U.S.
:
Contract Procurement/Retention
:
1,494,886
:
Wire/check
:
Direct
:
225,680
:
United States
:
United States
:
No
:
Germany