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Friday, Oct 19, 2012 - Last Blog on Earth | News

Bribery-linked executive endorses DeMaio

Titan Corporation pleaded guilty to corrupt practices overseas, paid millions in settlements

By Dave Maass
kerekou Former Benin president Mathieu Kerekou
- Photo: Ricardo Stuckert/ABr

Today, Carl DeMaio's mayoral campaign issued a press release titled "Defense Industry Business Leaders Back DeMaio for Mayor." 

It's mostly about the Port of San Diego Ship Repair Association's support, but at the bottom there's this quote:

Gene W. Ray, a Founder and former Chairman, President and CEO of the Titan Corporation, affirmed, “Carl DeMaio is the only candidate who’ll attract jobs to our city. He understands job creation and the importance of the defense industry, and astutely knows that the two are intricately tied together.”

Gene Ray? Gene Ray? Titan? Where have we heard that name before?

Oh yeah, he was the CEO when Titan (now part of L3 Communications) was bribing the president of Benin. From The New York Times

The Titan Corporation, a leading military and intelligence contractor, will pay $28.5 million to settle criminal and civil charges that it bribed the president of Benin, government officials said yesterday. 

The combined penalties are the largest imposed on a company in the history of the Foreign Corrupt Practices Act. That 1977 law bars American companies from bribing presidents, princes and potentates in the pursuit of overseas contracts.

and

The [Securities and Exchange Commission] said Titan funneled about $2 million to the 2001 election campaign of Benin's incumbent president "at the direction of at least one former senior Titan officer based in the United States." It said Titan paid the money "to assist the company in its development of a telecommunications project in Benin."

Titan, which is based in San Diego and has about 12,000 employees, said in February 1999 that its president and chief executive officer, Gene W. Ray, had met with the president of Benin, Mathieu Kerekou, to announce plans for "a state-of-the-art communications system" for the country. Mr. Ray, 66, has been Titan's chief executive since the company was founded in 1981.

and

The S.E.C. said yesterday that Titan's misconduct was global: though Titan does business in more than 60 countries, the company has had no policy on overseas bribery and has failed to oversee its 120 international agents. It said Titan had falsified documents filed with the United States government, underreporting commission payments in its business dealings in France, Japan, Nepal, Bangladesh and Sri Lanka.

Yowzer.  You never heard Newt Gingrich trumpeting Duke Cunningham's endorsement

 
 
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