N.J. WASTEWATER TREATMENT SUPPLY COMPANY OWNER AND A CONTRACTS ADMINISTRATOR PLEAD GUILTY TO BID RIGGING, FRAUD AND TAX OFFENSES

On July 23, 2008, JMJ Environmental Inc. (“JMJ”), a wastewater treatment company, its owner, John Drimak Jr., and Norman Stoerr, a former contracts administrator, pled guilty to various counts of bid rigging, fraud, and tax evasion. These charges were all in connection with sub-contracts for wastewater treatment services at two Environmental Protection Agency (“EPA”) designated Superfund Sites, Federal Cresote in Manville, NJ and Diamond Alkali in Newark, NJ.
JMJ and Mr. Drimak pled guilty to rigging bids at Federal Cresote from October 2002 to February 2006. Mr. Drimak also pled guilty to one count to defraud the EPA and Tierra Solutions Inc., a general contractor based in Texas, at Diamond Alkali by participating in a kickback and false invoicing scheme that took place from January 2002 to April 2007. Mr. Drimak also pled guilty to filing false tax returns between 2002 and 2005. Mr. Stoerr pled guilty to rigging bids at Federal Cresote from October 2002 to October 2003. He also pled guilty to defraud the EPA and Tierra Solutions at Diamond Alkali by participating in a kickback and false invoicing scheme that took place from 2000 to 2004. In addition, Mr. Stoerr pled guilty to aiding Mr. Drimak file a false tax return.

Mr. Drimak allegedly provided more than $26,000 in kickbacks to Mr. Stoerr and approximately $385,000 to Mr. Stoerr’s former superior in exchange for the steering of contracts to JMJ. The kickbacks came in the form of money, airline tickets, and cruises. Mr. Stoerr and his former superior also received kickbacks from three other sub-contracts at Federal Creosote and Diamond Alkali.

The DOJ’s Antitrust Division remains committed to criminal enforcement.

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