A New Jersey industrial pipe supply company and its owner were sentenced Tuesday for their participation in a conspiracy to commit fraud and pay bribes to a Consolidated Edison of New York (Con Ed) purchasing manager in exchange for the manager's efforts to steer contracts to the company, the Department of Justice (DOJ) said in a Jan. 17 news release.
According to court documents, Grobart and a former sales broker for Neill Supply paid cash bribes totaling nearly $300,000 to James Woodason, a department manager in Con Ed's purchasing department. Woodason would then provide Neill Supply with confidential bid information from other bid competitors, causing Con Ed to pay higher-non-competitive prices for supplies, DOJ said, in a process geared toward steering Con Ed industrial pipe supply contracts to Neill Supply.
Bernard Grobart was sentenced to 60 months in prison and ordered to pay a $125,000 criminal fine, and Teneyck Inc., formerly known as Neill Supply Co. Inc., was sentenced to pay a $550,000 criminal fine. Grobart and Teneyck were also sentenced to pay nearly $300,000 in restitution to Con Ed. In March, the company and its owner pleaded guilty to participating in a conspiracy to defraud Con Ed from late 2003 to mid-2008.