James “Craig” Dutton, 42, and his wife Lisa Delaine Dutton, 42, have been charged with conspiracy, 11 counts of wire fraud and 10 counts of money laundering after an FBI investigation uncovered a system of bribery and kickbacks they say stretched from Cobb County to Olathe, Kan., Barry Grissom, U.S. Attorney for Kansas, said Wednesday.
Craig Dutton was the assistant national sales manager for Glock, investigators say. The American headquarters of Glock Inc. is in Smyrna, near the East-West Connector.
John Sullivan Ralph III, 40, of Kansas; Welcome D. “Bo” Wood, Jr., 65, of Oviedo, Fla.; and Paula Ann Wood, 63, also of Oviedo, were also indicted on the same charges.
Bo Woods was Glock’s eastern regional manager, Grissom’s office says.
According to the indictment, Ralph, who was the owner of Global Guns & Hunting Inc., located in Olathe, Kan., secretly paid Glock executives to secure preferential treatment over other firearms distributors.
FBI officials say Ralph’s company was given priority access to limited products, potential customers and confidential Glock information in exchange for bribes and kickbacks, which they say he shipped via the U.S. Postal Service and wire transfers to the Duttons and the Woods.
Indictments say most of Glock’s pistols are sold to independent firearm distributors that have contracts with Glock to resell its pistols. The allocation of Glock pistols was important because the demand frequently exceeded the supply, the indictment stated.
Glock firearms are
sold in one of two channels, the U.S. Attorney’s office explains. “Blue label” firearms are sold to law enforcement agencies at a discounted price, while “red label” firearms are sold to private citizens at market value, officials say.
Investigators accuse both the Woods and the Duttons of providing Ralph with equipment and software that allowed him to sell blue label guns at the red label price.
The indictment indicates Ralph sold to commercial buyers at least 14,000 pistols — most of which went to the sporting goods chain Cabela’s — that he purchased from the Glock executives at the law-enforcement rate.
Lisa Dutton and Paula Woods have each been accused of forming companies to conceal the bribes and kickbacks, the U.S. Attorney’s office says.
If convicted, the five could face decades in jail and a litany of fines. According to the FBI, a conspiracy conviction alone carries a maximum penalty of 30 years in federal prison and a fine of up to $1 million.
Assistant U.S. Attorney Richard Hathaway is prosecuting and a spokesman for the U.S. Attorney’s office in Kansas said all court proceedings will take place in Kansas.