Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Probation for Three of the Defendants Charged in Antitrust Investigation into New York Presbyterian Hospital Facilities Contracting, (Jan 18, 2013)

By Jeffrey May, J.D.

The federal district court in New York City recently sentenced three defendants who pleaded guilty to charges stemming from a long-running federal antitrust investigation relating to contracts administered by the Facilities Operations Department and Engineering Department at New York Presbyterian Hospital (NYPH).

The former owner of an asbestos monitoring contractor that provided services to NYPH, who pleaded guilty in April 2009 to making false statements to FBI agents and Department of Justice Antitrust Division representatives during the investigation, was sentenced on January 15.

According to the charge against Stephen McAnulty, the Brooklyn man falsely claimed to officials that he was not aware that any purchasing official at NYPH received kickbacks in return for asbestos monitoring and asbestos removal contracts at NYPH. According to the Justice Department, at the direction of the owner of an asbestos removal company, McAnulty negotiated the amount of the kickbacks with a purchasing official in order for McAnulty's company to be the asbestos monitoring company at NYPH. McAnulty understood that the kickbacks to that purchasing official totaled at least $28,000, the Justice Department alleged. McAnulty was sentenced to three years of probation and 100 hours of community service. In addition, he was fined $5,000 (U.S. v. McAnulty, Criminal No. 09 CR 352).

In November 2007, as part of the same investigation, Mister A.C. Ltd., a Rockville Center, New York, heating, ventilation and air conditioning (HVAC) services company, and its owner, Michael Vignola, pleaded guilty to conspiring to rig bids on HVAC services provided to NYPH. Vignola also pleaded guilty to a conspiracy to defraud NYPH by paying more than $130,000 to NYPH purchasing officials for their assistance in obtaining work. The challenged conduct dated as far back as 2001.

Mister A.C. and Vignola were sentenced in the federal district court in New York City on January 15, and judgment was entered on January 17. On the single bid rigging count, Mister A.C. was sentenced to three years of probation and ordered to pay $131,000 in restitution to NYPH. Vignola was sentenced to a term of probation of one year, with probation to expire at the earlier of one year or the repayment of $131,000 in restitution to NYPH, owed jointly and severally with Mister A.C. (U.S. v. Mister A.C. Ltd., Criminal Case No. 07 CRIM 1021).

Companies: Mister A.C. Ltd.

News: Antitrust AntitrustDivisionNews