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.
The fraud scheme took place between May 2001 and January 2005 and the kickbacks amounted to $28,000. After receiving these payments, the executive at the manufacturing company used Mr. Granizo’s company for its services to transport U.S. military and other equipment around the world.
This is the DOJ’s ninth case in its ongoing investigation into the military restraints industry. A month ago, the third employee at Peck & Hale, LLC, a defense firm, pled guilty in this investigation.
A wire fraud charge carries a maximum sentence of 20 years of imprisonment and maximum fine of $250,000. The Antitrust Division’s National Criminal Enforcement Section with the assistance of the Department of Defense’s Defense Criminal Investigative Service of the Department of Justice is conducting the ongoing investigation.