Your Ad Here

Friday, September 21, 2007

Military Contractor Faces Jail Time For Fraud

The president and owner of Jacobi Industries Inc., a Medford, N.Y. company, has pleaded guilty to conspiring to rig bids on U.S. Department of Defense (DOD) contracts for military tie-down equipment and cargo securing systems, the U.S. Department of Justice says.

Jacobi Industries provided military tie-down equipment and cargo securing systems to DOD. These products are used to secure vehicles, aircraft, munitions, shipping containers and other
specialized military cargo requirements for land, sea, and air transportation.

Roger Jacobi pleaded guilty in the U.S. District Court in Islip, N.Y., to a felony charge of bid rigging. Under the plea agreement, Jacobi has agreed to pay a criminal fine of $20,000, and to cooperate with the Justice Department's ongoing investigation. Jacobi could also serve up to six
months in prison. The terms of the plea agreement are subject to court approval.

Jacobi participated in the bid-rigging conspiracy from November 2001 to January 2005, during which time he and co-conspirators discussed and agreed among themselves not to compete by agreeing not to submit prices or bids against each other on certain contracts.

"Today's charges demonstrate our ongoing commitment to prosecute those who deprive the U.S. military of the benefits of competitive bidding on taxpayer funded contracts," says Thomas Barnett, assistant attorney general in charge of the Justice Department's Antitrust Division.

Jacobi is charged with carrying out the conspiracy with co-conspirators by:

-- Attending meetings and engaging in discussions regarding the sale of
military tie-down equipment and cargo securing systems;
-- Agreeing during those meetings and discussions not to compete on
certain contracts with the DOD by not submitting prices or bids on those
-- Submitting bids in accordance with the agreements reached;
-- Selling military tie-down equipment and cargo securing systems to
the DOD under those agreements at collusive and non-competitive prices; and
-- Accepting payment for military tie-down equipment and cargo securing
systems sold at the collusive and non-competitive prices.

Jacobi is charged with bid rigging in violation of the Sherman Act, which carries a maximum sentence of 10 years of imprisonment, and a fine of $1 million for individuals and $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

The charge against Jacobi represents the fourth case to arise from an ongoing investigation into the military restraints industry, the Justice Department says.

Watch more breaking news now on our video feed:

Bookmark and drop back in sometime.

Labels: , , , , , , ,


Post a Comment

Subscribe to Post Comments [Atom]

<< Home