5 Dumbest Things on Wall Street: Jan. 22

Gun Stunner

Something dirty is going on at Dirty Harry's favorite gunmaker.

Amaro Goncalves, Smith & Wesson's (SWHC) (Stock Quote: SWHC) vice president for sales, was one of 22 individuals indicted by the U.S. Justice Department Tuesday for violating federal bribery laws involving the sale of firearms. Goncalves and crew were charged with violating the Foreign Corrupt Practices Act and conspiracy to commit money laundering involving the sale of guns and body armor.

The indictments were filed in December after agents worked undercover last year to expose the ring. The individuals were arrested on Monday in Las Vegas and Miami.

(SWHC) Go ahead and make our day, because a Dumbest entry rarely gets cooler than this.

According to the indictment, an unidentified business associate who was a former executive for an arms manufacturer set up a meeting between Goncalves and two representatives of an unnamed African country's minister of defense. Little did he know, however, that the two men were really undercover FBI agents.

(SWHC) The agents informed Goncalves that in order to win a contract for the sale of guns he would have to tack on a 20% so-called "commission" to the price quotes to be split between the purported minister of defense and his supposed representatives. Goncalves complied by providing the inflated price quotes for two sales, a tiny 25-gun deal and a larger transaction encompassing 1,800 pistols.

Now, with all due apologies to Clint Eastwood, we just have one question for Goncalves while he awaits trial: Do you feel lucky enough to beat the rap?

(SWHC) Well, do ya, punk?

Dumb-o-meter score: 75 -- Goncalves really shot himself in the foot on this one. And with Magnum Force, too. L'affaire

 

 

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