Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Project Manager convicted in Superfund kickback scheme sentenced to longest prison sentence for antitrust crime, (Mar 3, 2014)

By Edward L. Puzzo, J.D.

Gordon D. McDonald, convicted in September 2013 of receiving over $1.5 million in kickback payments as a former project manager for a prime contractor at two EPA-designated Superfund sites in New Jersey, was sentenced to 14 years in prison, the Department of Justice has announced. The DOJ stated that this represents the longest prison sentence involving an antitrust crime ever imposed (U.S. v. McDonald, Criminal No. 09-656 (JAE)).

McDonald had been convicted of engaging in separate bid-rigging, kickback and fraud conspiracies with three subcontractors at two New Jersey Superfund sites—Federal Creosote in Manville and Diamond Alkali in Newark. In addition to accepting the kickbacks of more than $1.5 million, McDonald also was convicted of engaging in an international money laundering scheme, major fraud against the United States, committing two tax violations, and obstruction of justice.

“Today’s sentencing reflects the seriousness of the crimes committed,” said Bill Baer, Assistant Attorney General in charge of the Justice Department’s Antitrust Division. “The prison sentence imposed by the court shows that if you engage in bid-rigging, fraud and kickback schemes your illegal actions will result in a longer prison sentence.”

Including McDonald, nine individuals and three companies have pleaded guilty or been convicted of charges arising out of this investigation, according to the DOJ. More than $6 million in criminal fines and restitution have been imposed and six of the individuals have been sentenced to serve prison sentences ranging from five to 168 months. One individual was sentenced to six months home confinement and the remaining two were sentenced to pay criminal fines and restitution. An additional individual, John A. Bennett, a Canadian citizen, was also charged on Aug. 31, 2009, and is facing extradition to the United States.

News: Antitrust AntitrustDivisionNews