GLOCK, probably best known for being carried on a law enforcement officer’s strong side, has landed on the wrong side of the law—not the corporation, but a couple of its top executives.
Two GLOCK executives and an Olathe Kansas gun dealer were recently charged with extortion and bribery. The accusation alleges dealing that included preferential treatment and access to confidential company data in exchange for over $1 million in bribes and kickbacks.
A federal grand jury saw fit to hand down the 22-count indictment against the Kansas gun dealer John Sullivan Ralph III as well as GLOCK executives James “Craig” Dutton and Welcome D. “Bo” Wood Jr. Both of the GLOCK executive’s wives were also named in the indictment based on information obtained during the FBI investigation.
According to the Kansas City Star, all five of the aforementioned defendants mentioned in the indictment face one count of conspiracy, 11 counts of wire fraud and 10 counts of money laundering.
It seems the whole affair went down something like this… John Sullivan Ralph III was the owner of OMB Guns. He allegedly bribed the GLOCK execs to gain preferential treatment over competitors. In addition, the GLOCK execs steered potential customers to OMB while ensuring the Kansas Firearms dealer priority access to limited products and confidential company information. They also allegedly influenced government contracts—including government agencies’ purchases of firearms and accessories—to advantage OMB.
According to prosecutors, the GLOCK officials seemed to have provided Ralph with certain software that allowed OMB to buy firearms at specially discounted law enforcement prices and then retail them to consumers at a premium. According to the indictment, OMB was able to profit from over 14,000 such firearm sales.
GLOCK originally discovered the alleged irregularities and filed suit against Ralph in 2012 in a Georgia federal court. Ralph contested the claim and quickly filed a countersuit. The case is still pending and currently, no information has been released whether the indictment will effect either parties claim.
Thus far, GLOCK has not come out with an official statement, but Ralph’s attorney Brian Bieber has offered comment. Bieber stated, they had recently been in contact with federal prosecutors and acknowledged they were not surprised by the indictment or charges. “We anticipate bringing this matter to a conclusion in the very near future,” Bieber said.
Stay tuned! It’s very likely this scandal has not seen the last of its news cycle. What are your thoughts about the indictment? Share them with us in the comment section.
Trackback from your site.