Business Crimes Hotline

COLORADO

Energy Company Pleads Guilty to Bid Rigging

An Oklahoma natural gas pipeline construction company and one of its executives have agreed to plead guilty to participating in a conspiracy to restrain trade by rigging bids submitted for the construction of natural gas pipelines in Colorado, the Department of Justice announced recently. Under the agreement the company will pay a $100,000 fine and the employee will pay $10,000. Each has also agreed to cooperate with the government's ongoing investigation. (United States v. Flint Energy Services, Inc., No. 06-00264, D. Co.)

GEORGIA

Three Arrested for Stealing Soft Drink Trade Secrets

An executive administrative assistant employed by a major soft drink manufacturer and two others have been arrested and charged with wire fraud and trade secret theft in a scheme to steal trade secrets from a national soft drink company and sell them to its closest competitor, according to the DOJ. The accused are alleged to have contacted the company's principle competitor offering to sell secret information related to an upcoming product launch. The competitor promptly notified the soft drink company, which in turn contacted the FBI. The defendants were arrested after providing an undercover agent with secret documents in exchange for $10,000, and offering to provide more secrets, including unreleased new product samples, for $1.5 million. (United States v. Dimson, No. 06-00313, N.D. Ga.)

MARYLAND

Attorney Sentenced for Immigration Fraud

A Virginia lawyer was sentenced to 46 months' confinement for immigration fraud, according to the Assistant U.S. Attorney for the District of Maryland. The lawyer admitting to using his knowledge of the immigration system to establish a scheme in which his law firm filed fraudulent 'green card' applications for otherwise unqualified immigrants. The fraudulent applications falsely asserted that certain employers had agreed to sponsor the applicants. (United States v. Danilov, no. 05-00198, D. Md.)

CEO of Investment Company Indicted for Fraud

The former CEO and majority shareholder of a Maryland investment company was charged in a 33-count indictment of diverting over $3 million to his own use over a 5-year period, according to federal prosecutors. The alleged scheme involved retaining monies tendered to the defendant but intended to be invested with the company, as well as a scheme to divert company funds to 'off the books' accounts under the defendant's personal control. (United States v. Lawbough, No. 05-00402, D. Md.)

MICHIGAN

Executive and Engineers Indicted for Stealing Secrets

The former Vice President of a Michigan company that manufactures heavy metal automobile parts using a unique and proprietary process was indicted along with two of the company's engineers on charges that they conspired to steal the companies' trade secrets. The trio is alleged to have planned to use the secret information to set up a Chinese-based competitor to the U.S. firm. The engineers are accused of using their positions of trust to access hundreds of confidential files, which they downloaded onto compact disks for transfer. (United States v. Lockwood, No. 06-20331, E. D. Mich.)

TEXAS

Texas Businessman Receives over 5 Years in Fraud Case

The DOJ announced that a Texas businessman was sentenced to 65 months in prison, an upward departure from the Sentencing Guidelines, and also ordered to pay nearly $2 million in restitution after pleading guilty to making a false statement on a loan, credit application and renewal. The charges stemmed from an alleged scheme to secure credit to purchase a grain company by misrepresenting the level of grain in the company's elevators. (United States v. , No. ”, E.D. Pa.).

CALIFORNIA

Former CEO Sentenced for Trade Secret Theft

The former CEO of a California software company was sentenced to a year and a day in prison for his role in a scheme to steal a competitor's secrets. The defendant admitted that he and other executives illegally accessed his competitor's networks, and then downloaded and stole the competitor's trade secrets resulting in a loss of at least $200,000 to the competitor. (United States v. O'Neil, No. CR 04-0118, N.D. Ca.)

COLORADO

Energy Company Pleads Guilty to Bid Rigging

An Oklahoma natural gas pipeline construction company and one of its executives have agreed to plead guilty to participating in a conspiracy to restrain trade by rigging bids submitted for the construction of natural gas pipelines in Colorado, the Department of Justice announced recently. Under the agreement the company will pay a $100,000 fine and the employee will pay $10,000. Each has also agreed to cooperate with the government's ongoing investigation. (United States v. Flint Energy Services, Inc., No. 06-00264, D. Co.)

GEORGIA

Three Arrested for Stealing Soft Drink Trade Secrets

An executive administrative assistant employed by a major soft drink manufacturer and two others have been arrested and charged with wire fraud and trade secret theft in a scheme to steal trade secrets from a national soft drink company and sell them to its closest competitor, according to the DOJ. The accused are alleged to have contacted the company's principle competitor offering to sell secret information related to an upcoming product launch. The competitor promptly notified the soft drink company, which in turn contacted the FBI. The defendants were arrested after providing an undercover agent with secret documents in exchange for $10,000, and offering to provide more secrets, including unreleased new product samples, for $1.5 million. (United States v. Dimson, No. 06-00313, N.D. Ga.)

MARYLAND

Attorney Sentenced for Immigration Fraud

A Virginia lawyer was sentenced to 46 months' confinement for immigration fraud, according to the Assistant U.S. Attorney for the District of Maryland. The lawyer admitting to using his knowledge of the immigration system to establish a scheme in which his law firm filed fraudulent 'green card' applications for otherwise unqualified immigrants. The fraudulent applications falsely asserted that certain employers had agreed to sponsor the applicants. (United States v. Danilov, no. 05-00198, D. Md.)

CEO of Investment Company Indicted for Fraud

The former CEO and majority shareholder of a Maryland investment company was charged in a 33-count indictment of diverting over $3 million to his own use over a 5-year period, according to federal prosecutors. The alleged scheme involved retaining monies tendered to the defendant but intended to be invested with the company, as well as a scheme to divert company funds to 'off the books' accounts under the defendant's personal control. (United States v. Lawbough, No. 05-00402, D. Md.)

MICHIGAN

Executive and Engineers Indicted for Stealing Secrets

The former Vice President of a Michigan company that manufactures heavy metal automobile parts using a unique and proprietary process was indicted along with two of the company's engineers on charges that they conspired to steal the companies' trade secrets. The trio is alleged to have planned to use the secret information to set up a Chinese-based competitor to the U.S. firm. The engineers are accused of using their positions of trust to access hundreds of confidential files, which they downloaded onto compact disks for transfer. (United States v. Lockwood, No. 06-20331, E. D. Mich.)

TEXAS

Texas Businessman Receives over 5 Years in Fraud Case

The DOJ announced that a Texas businessman was sentenced to 65 months in prison, an upward departure from the Sentencing Guidelines, and also ordered to pay nearly $2 million in restitution after pleading guilty to making a false statement on a loan, credit application and renewal. The charges stemmed from an alleged scheme to secure credit to purchase a grain company by misrepresenting the level of grain in the company's elevators. (United States v. , No. ”, E.D. Pa.).