American Bank Note Holographics, Inc.
On January 4, 2013, Honorable Judge Barbara S. Jones ordered Morris Weissman to pay approximately $64 million in restitution for his 1998 fraud as chairman and CEO of American Bank Note Holographics, Inc. Weissman was indicted in 2001, and was later convicted in 2003, after a five-week jury trial on two counts of accounting fraud and two counts of FCPA accounting provisions offenses. Weissman inflated the company's numbers to increase its IPO price and subsequently lied to auditors about the company's performance. Discovery of the fraud caused the stock price to decrease 80%, from $16 per share to $1.80 per share, resulting in over $100 million in shareholder losses.
Weissman has been free on bond since 2003 and has yet to be sentenced for FCPA violations. Weissman originally faced up to 30 years in prison, more than $1 million dollars in fines, and mandatory restitution. Joshua Cantor, a co-conspirator with Weissman, pleaded guilty in 2001 for his role in the fraud and bribing foreign officials. He has yet to face sentencing as well.
Control Components, Inc.
On February 1, 2013, prosecutors for the Control Components, Inc. ("CCI") case asked the court to sentence defendants Mario Covino, Richard Morlok, and Flavio Ricotti to probation despite potentially large jail sentences, ranging from 30 months for Ricotti to 60 months for Covino and Morlock. The prosecutors stated that the defendants deserved these sentences because of their cooperation and guilty pleas early in the case. The three were sentenced in mid-March 2013. Covino and Morlock were sentenced to three years probation. Ricotti was sentenced to time served.
In 2009, CCI pleaded guilty to violating the FCPA and the Travel Act. CCI admitted to a bribery scheme spanning a decade that allowed the company to secure contracts in 36 countries. A criminal fine of $18.2 million was imposed on CCI and the DOJ required a compliance monitor. Former CCI CEO Stuart Carson pleaded guilty to one count of violating the FCPA. He was fined $20,000 and received four months in prison. His wife and former sales director of CCI, Hong Rose Carson, was fined $20,000 and sentenced to six months home confinement and 200 hours of community service. Paul Cosgrove, the former director of worldwide sales for CCI, was sentenced to 13 months home confinement and paid a fine of $20,000. David Edmonds, former VP of CCI, was jailed for four months following a guilty plea. He later received four months in home confinement and a penalty of $20,000.
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