Two former employees of a major pistol manufacturer and a Kansas-based distributor are among those indicted by the Justice Department in a kickback, bribery and money-laundering scheme that spanned nearly 10 years.
In a release issued by the FBI June 4, federal prosecutors allege John Sullivan Ralph, III, of Olathe, Kansas, secretly paid executives at Glock to provide his retail operation with preferential treatment for distribution, discounts and government sales.
The FBI alleges Ralph, 40, bribed Glock’s former assistant sales manager James “Craig” Dutton and former eastern regional manager Welcome D. “Bo” Wood, Jr., to provide “equipment and software to allow him to convert firearms sold with the law enforcement discount to firearms sold at the premium price to the commercial market.”
“Ralph is alleged to have sold at least 14,000 pistols to commercial buyers —including Cabela’s — which Glock sold to Ralph for resale to law enforcement agencies,” the FBI says.
Also named in the indictment are Paula Ann Wood and Lisa Delaine Dutton, the former Glock employee’s wives, who the FBI alleges set up limited liability companies to help conceal the payments and kickbacks.
“The indictment alleges that from 2003 to 2009, Ralph used the U.S. Postal Service to send and receive approximately 140 bribes and kickbacks that were delivered to defendants Lisa Dutton and Paula Wood,” the FBI says. “Between 2009 and 2011, the indictment alleges, Ralph used wire transfers to send approximately 80 bribes and kickbacks.”
Ralph reportedly paid more than $1 million in bribes to receive preferential treatment for his company OMB Guns, according to prosecutors. The Kansas City Star reports that Glock sued Ralph when the company learned of the alleged conspiracy in 2012.
Each of those named in the indictment is charged with one count of conspiracy, 11 counts of wire fraud and 10 counts of money laundering. The conspiracy and wire fraud charges each carry a maximum penalty of 30 years in prison and $1 million in fines; the money laundering charge carries a maximum penalty of 20 years and $50,000 in fines.