On July 31, 2008, Bennet Environmental Inc. (“BEI”), a Canadian soil treatment company, pled guilty and agreed to pay $1 million criminal fine for its role in a conspiracy to defraud the U.S. Environmental Protection Agency (“EPA”) at a EPA designated Superfund site, Federal Creosote in Manville, NJ.
On July 29, 2008, Paul Wilkinson and Christopher Cartwright, two U.S. Department of Defense (“DOD”) contractors, pled guilty to defraud the United States, commit wire fraud and steal trade secrets from Matthew Bittenbender, another U.S. DOD contractor.
On June 28, 2008, Manuli Rubber Industries SpA (“Manuli”), an Italian marine hose manufacturer, and Robert L. Furness, the former president of Manuli’s subsidiary Plantation, pled guilty for their role in a worldwide conspiracy to rig bids, fix prices, and allocate market share in the marine hose industry. Manuli agreed to pay $2 million in criminal fines, while Mr. Furness will pay $75,000 and serve a two year prison sentence. Mr. Furness is the third executive at Manuli to be charged for his role in the conspiracy. Additionally, Giovanni Scodeggio, manager of Parker ITR S.r.l.'s Oil & Gas Business Unit, another Italian marine hose manufacture, pled guilty for his role in the same conspiracy. Mr. Scodeggio agreed to let the court decide his prison sentence, to pay a criminal fine of $20,000, and to cooperate with the Department of Justice in their ongoing investigation.
On July 28, 2008, Timothy Pfeil, a former executive for SAS Cargo Group A/S (“SAS”), pled guilty to serve six months in prison for his role in a worldwide conspiracy to fix air cargo rates for shipments to and from the United States. Mr. Pfeil, the second airline executive charged in this conspiracy, will cooperate in the Department of Justice’s ongoing investigation. Earlier this month, SAS pled guilty and agreed to pay a criminal fine of $52 million for its role in the conspiracy. So far nine other airlines, including British Airways, Korean Air Lines, Quantas Airways, Japan Airlines, Cathay Pacific Airways, Martinair Cargo, Air France, and KLM Royal Dutch Airlines, and a former Quantas executive have been charged in the DOJ’s ongoing investigation in the air cargo industry. More than $1.2 billion in criminal fines have been imposed.
Andre Barlow
(202) 589-1834
abarlow@dbmlawgroup.com
On June 30, 2008, Joel M. Gostomelsky, the director of the Hines, IL Department of Veteran Affairs (“VA”) Consolidated Mail Outpatient Pharmacy (“CMOP”) pled guilty to one count of conspiring to allow a subordinate to participate in decisions directly affecting the financial interests of the subordinate's spouse and one count of accepting illegal gratuities.
On June 24, 2008, John Cockerham, a U.S. Army office, and his wife, Melissa Cockerham, of San Antonio pled guilty to charges of conspiracies to commit bribery and money laundering. Mr. Cockerham pled guilty to one count of conspiracy to commit bribery and one count of money laundering. Mrs. Cockerham pled guilty to one count of money laundering.
On June 20, 2008, Charles N. Kriss, a former New York City Department of Citywide Administrative Services engineer, pled guilty to conspire to commit bribery in connection with a repair project to reconstruct Pier 86 where the Intrepid Sea, Air, and Space Museum is located. Mr. Kriss agreed to serve a sentence and pay a fine (yet to be determined) and cooperate with the ongoing investigation.
On June 13, 2008, Frank Granizo, a former president of a licensed freight forwarding company based in Florida, pled guilty to wire fraud related to paying kickbacks to an unnamed executive at an unnamed manufacturing company. Mr. Granizo also agreed to help the Department of Justice (“DOJ”) in its ongoing investigation.
On June 12, 2008, James P. Robinson of Atlanta, GA was charged with two counts of income tax evasion and one count of conspiracy to commit wire fraud in a kickback scheme against Home Depot. After appearing in court, the presiding judge granted Mr. Robinson a $10,000 bond. Allegedly, Mr. Robinson took kickbacks from foreign vendors who were interested in doing business with Home Depot. Also, he evaded taxes for the years 2005 and 2006 in the hundreds of thousands of dollars.
Continue reading "SECOND HOME DEPOT EMPLOYEE CHARGED IN VENDOR KICKBACK SCHEME" »
On June 10, 2005, Levonda J. Selph, a retired colonel in the U.S. Army, pled guilty to charges of conspiracy and bribery for her role in influencing Department of Defense (“DOD”) contracts at Camp Victory, Iraq in 2004 and 2005. In addition to pleading guilty, Lieutenant Colonel Selph agreed to serve a term of imprisonment and pay the DOD a restitution fee of $9,000.
On June 5, 2008, Charles N. Kriss, a former New York City Department of Citywide Administrative Services engineer, was indicted for his role in a conspiracy to commit bribery by a federal grand jury in the U.S. District Court in Inslip, NY. The Department of Justice accused Mr. Kriss of accepting bribes from a co-conspirator company supplying New York City with plastic marine pilings for a project to reconstruct Pier 86 the home of the Intrepid Sea, Air, and Space Museum.
Continue reading "FORMER NEW YORK CITY ENGINEER INDICTED IN CONSPIRACY TO COMMITT BRIBERY" »
On June 3, 2008, Steven L. Berman, a Maryland tax lien agent, pled guilty and agreed to pay $750,000 for his role in rigging bids in tax lien auctions in several Maryland counties. Mr. Berman is likely to face a period of incarceration up to 10 years.
Continue reading "MARYLAND TAX LIEN AGENT PLEADS GUILTY TO RIGGING BIDS AT TAX LIEN AUCTIONS " »
On June 3, 2008, Raman International Inc. (“Raman”), a defense contractor, pled guilty to one count of conspiracy to commit bribery. It agreed to pay the maximum criminal fine for a corporation charged with conspiracy to commit bribery of $500,000 and restitution fees amounting to $327,192 to the Department of Defense (“DOD”).
Continue reading "DOD CONTRACTOR PLEADS GUILTY TO CONSPIRACY TO COMMIT BRIBERY" »
On May 30, 2008, as a part of their ongoing investigation into the military restraints industry, the DOJ reached a plea agreement with Wilson Freire, a former government contracts manager at Peck & Hale LLC. Mr. Freire pled guilty to two separate conspiracies of bid rigging and taking kickbacks on contracts taken in connection with various equipment sold to the U.S. Department of Defense (“DOD”).
On May 29, 2008, Anthony M. Tesvich, a former employee of Home Depot, was charged with three counts of tax evasion and one count of conspiracy to commit wire fraud.
