Olathe gun dealer, Glock execs indicted in kickback scheme

06/04/2014 3:53 PM

06/05/2014 12:24 PM

An Olathe firearms distributor was indicted by a federal grand jury Wednesday on charges of paying bribes and kickbacks to officials with Glock Inc.

Federal prosecutors allege that John Sullivan Ralph III, whose company does business as OMB Guns, paid more than $1 million in bribes and kickbacks to receive preferential treatment and confidential company information.

The grand jury also indicted two men who had been employed by Glock.

James “Craig” Dutton, 42, of Acworth, Ga., was assistant national sales manager for Glock USA, headquartered in Smyrna, Ga., according to prosecutors.

Welcome D. “Bo” Wood Jr., 65, of Oviedo, Fla., was Glock’s eastern regional manager.

Their wives, Lisa Delaine Dutton, 42, and Paula Ann Wood, 63, were indicted for allegedly concealing payment of the bribes and kickbacks.

The defendants each were charged with one count of conspiracy, 11 counts of wire fraud and 10 counts of money laundering.

Ralph, 40, allegedly sent about 140 payments through the U.S. Postal Service from 2003 to 2009 and 80 by wire transfer from 2009 to 2011, according to the indictment.

In exchange for the payments, the two company officials steered potential customers, including government agencies, toward Ralph’s company and gave him priority access to limited products, the indictment alleges.

Ralph’s company allegedly sold more than 14,000 pistols to commercial customers, though the pistols had been sold to him for resale to law enforcement agencies. The price for weapons going to law enforcement was lower, according to prosecutors.

After Glock discovered that alleged scheme, it filed a civil lawsuit in federal court in Georgia against Ralph and his company in 2012. Ralph filed a counterclaim against Glock. The case is pending.

Brian Bieber, an attorney representing Ralph, said Wednesday that they had been in contact with federal prosecutors and were not surprised by the charges.

“We anticipate bringing this matter to a conclusion in the very near future,” Bieber said.

A request for comment sent to Glock’s legal department Wednesday was not returned.

To reach Tony Rizzo, call 816-234-4435 or send email to trizzo@kcstar.com.

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