carbonmarine
10-27-2004, 09:56 AM
Guy"s this happends everyday with co's operating in China...
I am in the high tech world and buyers and Exec's do this shit all the time !!! ... These guy's got ratted on by a sales guy from a competitor trying to sell into the Comapny.. :hammer2:
FORMER SHOE COMPANY EXECUTIVE ARRESTED IN SCHEME THAT LED TO BRIBES FROM CHINESE MANUFACTURERS
A former vice president of Vans Inc. and a man who once worked as a consultant to the shoe and apparel maker have been arrested on federal charges that they obtained $4.7 million in bribes and kickbacks from Chinese factories that manufactured Vans shoes and clothing.
Scott Andrew Brabson, 49, a former Santa Barbara resident who recently moved to Southlake, Texas, and Jay William Rosendahl, 47, of Lake Oswego, Oregon, were both arrested last night by the United States Marshals Service. Both men were taken into custody at their residences.
The two men were indicted on August 25. The 13-count indictment alleges conspiracy, honest services mail fraud, eight counts of wire fraud, foreign travel to promote commercial bribery, money laundering conspiracy and money laundering.
Between November 1997 and December 2000, Brabson was the vice president of sourcing for the Santa Fe Springs-based Vans, a position that saw him overseeing the company's manufacturing operation. At Brabson's request, Vans hired Rosendahl as a product development consultant in February 1999.
The indictment alleges that Brabson and Rosendahl met with owners and managers of the Chinese factories and informed them that in order to continue receiving product orders from Vans, the factories would have to send kickbacks amounting to 3 percent of Vans' orders. The defendants provided the factories with the number of a Hong Kong bank account, and the factories wire-transferred the kickbacks into that account.
Shortly after Brabson left Vans, he moved almost $3 million of the money into accounts at a Luxembourg bank. Brabson then transferred about $1.3 million into different Hong Kong bank accounts controlled by Rosendahl. Each defendant allegedly withdrew several hundred thousand dollars in cash along the way.
The investigation started when Vans referred suspicions of wrongdoing to federal authorities. Vans, which was recently acquired by VF Corporation, fully cooperated during the criminal investigation and is considered to be the victim of the bribery and kickback scheme.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If convicted on all 13 counts, Brabson and Rosendahl would each face a maximum penalty of 95 years in federal prison.
Both defendants are expected to make their initial court appearances this afternoon in United States District Court in the district where they were arrested.
This matter was investigated by IRS-Criminal Investigation Division, the United States Postal Inspection Service and the Federal Bureau of Investigation.
I am in the high tech world and buyers and Exec's do this shit all the time !!! ... These guy's got ratted on by a sales guy from a competitor trying to sell into the Comapny.. :hammer2:
FORMER SHOE COMPANY EXECUTIVE ARRESTED IN SCHEME THAT LED TO BRIBES FROM CHINESE MANUFACTURERS
A former vice president of Vans Inc. and a man who once worked as a consultant to the shoe and apparel maker have been arrested on federal charges that they obtained $4.7 million in bribes and kickbacks from Chinese factories that manufactured Vans shoes and clothing.
Scott Andrew Brabson, 49, a former Santa Barbara resident who recently moved to Southlake, Texas, and Jay William Rosendahl, 47, of Lake Oswego, Oregon, were both arrested last night by the United States Marshals Service. Both men were taken into custody at their residences.
The two men were indicted on August 25. The 13-count indictment alleges conspiracy, honest services mail fraud, eight counts of wire fraud, foreign travel to promote commercial bribery, money laundering conspiracy and money laundering.
Between November 1997 and December 2000, Brabson was the vice president of sourcing for the Santa Fe Springs-based Vans, a position that saw him overseeing the company's manufacturing operation. At Brabson's request, Vans hired Rosendahl as a product development consultant in February 1999.
The indictment alleges that Brabson and Rosendahl met with owners and managers of the Chinese factories and informed them that in order to continue receiving product orders from Vans, the factories would have to send kickbacks amounting to 3 percent of Vans' orders. The defendants provided the factories with the number of a Hong Kong bank account, and the factories wire-transferred the kickbacks into that account.
Shortly after Brabson left Vans, he moved almost $3 million of the money into accounts at a Luxembourg bank. Brabson then transferred about $1.3 million into different Hong Kong bank accounts controlled by Rosendahl. Each defendant allegedly withdrew several hundred thousand dollars in cash along the way.
The investigation started when Vans referred suspicions of wrongdoing to federal authorities. Vans, which was recently acquired by VF Corporation, fully cooperated during the criminal investigation and is considered to be the victim of the bribery and kickback scheme.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If convicted on all 13 counts, Brabson and Rosendahl would each face a maximum penalty of 95 years in federal prison.
Both defendants are expected to make their initial court appearances this afternoon in United States District Court in the district where they were arrested.
This matter was investigated by IRS-Criminal Investigation Division, the United States Postal Inspection Service and the Federal Bureau of Investigation.