Glock sales staff and gun distributors caught in scheme

[85win]

Topeka, Kan. -- A Kansas firearms distributor was indicted today on federal charges of paying more than $1 million in bribes and kickbacks to executives of the company that manufactures Glock pistols.

U.S. Attorney Barry Grissom says 40-year-old John Sullivan Ralph, III, of Olathe, who was owner of Global Guns & Hunting Inc., has been charged with one count of conspiracy, 11 counts of wire fraud and 10 counts of money laundering....

http://www.kake.com/home/headlines/...-bribes-and-kickbacks-to-Glock-261883051.html

 

[Wishoot]

Very interesting.

Looks like someone might be going to jail for a while.

 

[lee1000]

That's a shame

 

[Superpsy]

Wait, you can't bribe officials of a private company to give you preferential treatment? Don't people do that all the time with "gentlemen's agreements" and side benefits to businesses? I.e. If I worked as a wedding photog I can let everyone know of my friend who is in tent rental and get a referral fee for this or become their preferred photog?

I can understand Glock suing the people involved but seems odd that the FBI got involved. Someone explain this in dummy terms for me please?

FYI: to the NSA and FBI. I have never done this!

 

[HexHead]

After reading "Glock, The Rise of America's Gun", this almost sounds like business as usual for them.

 

[itsa pain]

One more scheme they have is charging so much for a glock that is so cheap to make

 

[tarosean]

^ Yeah thats what I was thinking... This is how they got their start..

However, this story seems to be more a long the lines of embezzlement from within. With the blue guns going out and profits returning from the switcharoo. (sp?)

 

[jrdolall]

If the Feds want you they can get you.

It looks like some Glock employees had their wives set up dummy companies and the "bribes" were sent to them rather than the actual employees getting the cash. Straight up "gifts" like trips and free golf are pretty normal in business but cash under the table is not the norm any longer.

 

[rbernie]

Wait, you can't bribe officials of a private company to give you preferential treatment?

Not unless it's a visible fee that anyone can pay if they choose. Otherwise, you create an uneven market and run afoul of the laws governing fair commerce.

 

[CoalTrain49]

Glock used a Universal Product Code to differentiate pistols that were sold for resale to law enforcement agencies (blue label products) from pistols sold for resale to the commercial market (red label products). The price list for pistols intended for resale to law enforcement agencies is lower due to the fact law enforcement agencies routinely buy in bulk and are often subject to bidding processes.

Sounds like procurement fraud to me. Gov't procurement is ripe with insider deals. What surprises me is how naive people are these days about electronic transactions and communications. The NSA collects everything you do electronically including everything from your phone. That information can be given to any agency if they suspect criminal or terrorist activity.

 

[BSA1]

The Blue Label resale program of Glocks to LEO's is fraudulent in Kansas.

During the last year I contacted several of the Glock authorized Blue Label dealers listed on their website. All but one dealer said they had the Glock Blue Label guns in stock and when I asked their price they all quoted me msrp for NEW Glocks.

The one Blue Label dealer that did not have them in stock told me I had to come to the store, select the gun I wanted, pay for the entire gun at the time I placed the order and then just wait for however long it took for the gun to come in even if it took a year or more.

Oh and they have a no refund or cancellation policy.

p.s. I brought a SIG239 law enforcement agency trade-in from a honest dealer instead.

 

[Panzerschwein]

This is a real shame! We have guys in uniform who should be getting those discounts, but NOOOOOO got to pad those pockets of those crooks.

They should be locked up for a long time.

 

[RustyShackelford]

Media....

The KAKE.com article is interesting.
I passed it on to some TV reporters in my area since I was unaware of this incident. A few of the Glock execs listed may be in my metro area too.

Rusty

 

[usurp31]

I know it seems shady, but I'm sure this happens across the board. Looks like the administration is cracking down on the firearm industry in general just to generate more negative attention.

 

[huntsman]

So the profit margin on a $200. gun is enough to cause creative business practices? Maybe the Fanboys ought to rethink spending their money so fast. What will this do to the company? can they just sweep the carcases away and fill the positions with new blood?

 

[george burns]

It's business as usual. Until someone gets caught.

 

[RustyShackelford]

The Good, The Bad & The Ugly; FBI, ATF, post #4.....

To answer post #4, the DoJ/US Atty may have cracked down on Glock & the KS area business due in part, to the many US govt contracts & US federal agencies that buy/issue Glock sidearms.
The FBI is well known for using the Glock 22/23 .40 & the ATF switched from SIGs to the Glock 22 & 23 pistols about 2 years ago.
Glock's USA business is going to get a "dressing down" I'm sure, but fraud & contract abuse(wasted $$$) is no big surprise.
The US government & armed forces/DoD wasted billions of tax $$$ in SW Asia(2001-2014).

RS

 

[Schwing]

IMHO it is aggressive marketing to law enforcement and golf buddy politics that have made Glock so popular for LEO agencies. I know from first hand knowledge that many a trip to Hawaii or Vegas have followed on the footsteps of new contracts being signed and LEO departments switching to Glocks.

Don't get me wrong, I am not trashing their products but I abhor this tactic so much that I won't ever own anything from Glock just based on my personal experiences with these practices.

 

[RustyShackelford]

FBI.gov .....

The Kansas City field office of the FBI has a link to the same article.
It may have been a press or media release by the US Atty's Office or the SAC(Special Agent in Charge) of the FBI office(s).
It looks like "dirty pool" as King of the Hill's Hank R Hill would say.
I tell you what.

FWIW; I'm not completely soured on Glocks. I've heard they "wine & dine" many clients in metro Atlanta GA.
The fact that the DoJ or FBI might be involved makes it look bad. It reportedly lasted from 2003-2009 too. That's a big pile of $$$.

 

[tarosean]

So the profit margin on a $200. gun is enough to cause creative business practices?

They reportedly cost 70 bucks to produce.. No clue what distributers pay for Blue guns we know retail (commercial models) run from 500-600+. Seems to me they weren't skimming pennies with millions in bribes, kickbacks, etc.

 

[huntsman]

^ yeah if the distributor can spread that kind of wealth around his mark-up must be huge.

 

[Blue Brick]

Good.

 

[Jorg Nysgerrig]

After reading "Glock, The Rise of America's Gun", this almost sounds like business as usual for them.

My thoughts exactly. Although, I wonder how pervasive this is among other makers.

 

[RevDerb]

After reading "Glock, The Rise of America's Gun", this almost sounds like business as usual for them.

I couldn't agree more, HexHead.

 

[RevDerb]

IMHO it is aggressive marketing to law enforcement and golf buddy politics that have made Glock so popular for LEO agencies. I know from first hand knowledge that many a trip to Hawaii or Vegas have followed on the footsteps of new contracts being signed and LEO departments switching to Glocks.

Don't get me wrong, I am not trashing their products but I abhor this tactic so much that I won't ever own anything from Glock just based on my personal experiences with these practices.

Anyone who believes that this isn't happening with the other gun manufacturers is delusional.