Guilty Plea-Conspiracy to Commit Bribery

Monday, October 27, 2008

American Composite Timbers (ACT), a firm engaged in the sale of plastic marine pilings and related products, located in Commack, N.Y., pleaded guilty to a one-count felony charge filed in U.S. District Court in Islip, N.Y. ACT is charged with facilitating payments from a co-conspirator corporation, a Virginia-based marine products firm, to a former employee of the city of New York, Charles N. Kriss.

In exchange for the payments, Kriss ensured that the co-conspirator corporation received orders to supply plastic pilings for a project to repair Pier 86, which was overseen by the city of . Kriss further ensured the co-conspirator corporation kept ACT as the distributor of the pilings.

Plastic marine pilings are reinforced synthetic pilings, resembling telephone poles, used as substitutes for traditional wood timber pilings in port and pier construction projects and other marine applications.

Under the terms of the plea agreement, which is subject to court approval, ACT has agreed to pay a criminal fine to be determined by the court and to cooperate fully in the ongoing investigation. According to the charge, the conspiracy began in or about 1999 and continued until in or about 2003.

According to the charge, ACT placed a series of at least eight orders with the co-conspirator corporation for plastic pilings to be used in the Pier 86 reconstruction. The co-conspirator corporation paid 10 percent of the amount of the purchase orders as bribes to influence and reward Kriss for directing orders to the corporation. ACT facilitated these payments and in return became the distributor for the co-conspirator corporation on the project. The bribe payment affected more than $400,000 in purchase orders.

Kriss, a former New York City Department of Citywide Administrative Services engineer, pleaded guilty in June 2008 in U.S. District Court in to participating in a conspiracy to commit bribery in connection with the Pier 86 repair project. In September 2008, Kriss was sentenced to serve one year and one day in prison and was ordered to pay restitution in the sum of $36,380, the amount of the payments he received.

Robert Taylor, the former president of the co-conspirator corporation, pleaded guilty in May 2007 in U.S. District Court in , to multiple felonies, including a charge of conspiring to bribe Kriss to ensure that his company received orders for plastic marine pilings for use in repairs to Pier 86. In January 2008, he was sentenced to serve two years in prison and pay a $300,000 fine.

The charge against ACT carries a maximum penalty of a $500,000 fine. 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.

Today’s charge reflects the Department’s commitment to protecting taxpayers from procurement fraud through its creation of the National Procurement Fraud Task Force. The National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, prosecution and prevention of procurement fraud associated with the increase in contracting activity for national security and other government programs.

The ongoing investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the Department of Defense’s Defense Criminal Investigative Service, with the assistance of the New York City Department of Investigation.

(Source: Department of Justice)

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Obama, Leaders Discuss Possible Sanctions, Force for South Sudan

U.S. President Barack Obama and regional leaders discussed options on Monday that included sanctions and a "regional intervention force" if South Sudan's warring

RI Offshore Project Boosts US Wind Entry

Rhode Island's Deepwater Wind will start installing the foundations for North America's first offshore wind farm on Monday, a milestone the company says could pave

Joint CIC on Enclosed Spaces to be Launched

The Maritime Authorities of the Tokyo and the Paris Memoranda of Understanding (MoU) on Port State Control will launch a joint Concentrated Inspection Campaign

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.5357 sec (2 req/sec)