Man Convicted of Bid-Rigging, Fraud in Connection with Newark Cleanup Site

A jury convicted a former project manager Monday for his role in conspiracies that spanned seven years and involved kickbacks in excess of $1.5 million at two Environmental Protection Agency (EPA) Superfund sites in New Jersey, the Department of Justice announced.  

The jury returned guilty verdicts on 10 counts charged in the indictment against Gordon D. McDonald, which was filed on Aug. 31, 2009.  

    After a two-week trial, McDonald, a former project manager for a prime contractor, was convicted of engaging in separate bid-rigging, kickback and other conspiracies with three subcontractors at two New Jersey Superfund sites – Federal Creosote in Manville  and Diamond Alkali in Newark.  He was also convicted of engaging in an international money laundering scheme, major fraud against the United States, accepting illegal kickbacks, committing two tax violations and obstruction of justice.  The various conspiracies took place at different time periods from approximately December 2000 until approximately April 2007.  McDonald was acquitted on counts eight and nine involving certain fraud and kickback charges.

“[The] guilty verdict sends a clear message that corrupt purchasing officials will be held accountable for engaging in fraudulent schemes designed to undermine the government’s competitive contracting practices,” said Bill Baer, assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “The Antitrust Division is committed to ensuring there is fair play and competition in our markets.”

    As part of the conspiracies, McDonald and co-conspirators at his former company accepted kickbacks from sub-contractors in exchange for the award of sub-contracts at Federal Creosote.  McDonald provided co-conspirators at Bennett Environmental Inc., a Canadian-based company that treats and disposes of contaminated soil, with bid prices of their competitors, which allowed them to submit higher bid prices and still be awarded the sub-contracts.  In exchange for McDonald’s assistance, Bennett Environmental, Inc. provided him with over $1.5 million in kickback payments.

Sentencing is scheduled for Jan. 6, 2014, before Judge Susan D. Wigenton.  To date, more than $6 million in criminal fines and restitution have been imposed, and five individuals have been sentenced to serve more than 10 years in total prison time.