A DEFENSE FIRM PLEADS GUILTY TO RIG BIDS ON U.S. DEPARTMENT OF DEFENSE CONTRACTS

On March 26, 2008, Peck & Hale, LLC, a Long Island, NY defense firm, pled guilty to a two-count felony charge for rigging bids for U.S. Department of Defense (“DOD”) military restraints equipment contracts. This equipment is used to tie down and secure vehicles, aircraft, munitions, shipping containers, and other specialized military cargo requirements for transportation. Peck & Hale was accused of being a part of two separate conspiracies. The firm also agreed to a pay a criminal fine of $275,000 and to cooperate with the Department of Justice (“DOJ”) in their ongoing investigation.

From December 2002 through January 2004, the firm conspired to rig bids on contracts for metal sling hoists assemblies sold to the U.S. Navy. In a separate agreement, from November 2001 through January 2005, Peck & Hale allegedly rigged bids on six different types of tie down equipment and cargo securing systems used by the military. Peck & Hale, with its co-conspirators, were accused of attending meetings to discuss the sale of this military equipment, agreeing during those meetings not to compete, disclosing confidential contractual information to each other, selling the equipment to the DOD at non-competitive prices and accepting payment for those sales.

This is the sixth case to come about in the DOJ’s ongoing investigation. The ongoing investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section with the assistance of the DOD’s Defense Criminal Investigative Service.

Andre Barlow
(202) 589-1834
abarlow@dbmlawgroup.com