On September 20, 2007, Mr. Jacobi, the president and owner of Jacobi Industries Inc., pled guilty to a felony charge of conspiring to rig bids on U.S. Department of Defense (“DOD”) contracts for military tiedown equipment and cargo securing systems. Under the plea agreement, Mr. Jacobi agreed to pay a criminal fine of $20,000, and to cooperate with the Department’s ongoing criminal investigation. Mr. Jacobi could also serve up to six months in prison.
The bid-rigging conspiracy occurred from November 2001 to January 2005. During this time Mr. Jacobi and co-conspirators allegedly colluded among themselves not to compete by agreeing not to submit prices or bids against each other on certain contracts.
The charges against Mr. Jacobi are the fourth case to arise from the ongoing investigation into the military restraints industry. The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section with the assistance of the DOD’s Defense Criminal Investigative Service.