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Military Contractor Admits to Bribes

Tuesday, February 28, 2017

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A Pennsylvania contractor who performed jobs at two military bases in New Jersey faces more than a decade in prison for paying bribes and kickbacks in order to obtain and retain the contracts.

George Grassie, 54, of Covington Township, pleaded guilty Feb. 21 before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of conspiracy to defraud the United States and commit bribery and one count of providing unlawful kickbacks, according to U.S. Attorney Paul J. Fishman.

U.S. Army
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This case involved projects managed by the U.S. Army Contracting Command in New Jersey.

Grassie owned an unidentified business that did construction, landscaping and excavation work at the Picattiny Arsenal (PICA) in Morris County and Joint Base McGuire-Dix Lakehurst (Fort Dix) in Burlington, prosecutors said, citing the charging document. Grassie also did work as a subcontractor.

Bribing a Government Employee

From December 2010 to December 2013, Grassie said he paid bribes valued at $95,000 to $150,000 to an employee at the U.S. Army Contracting Command in New Jersey to obtain and retain the contracts.

Case documents show that the government employee—who was not identified—received money, construction material and free labor from Grassie in exchange for the contracts.

At one point during the scheme, the employee also allegedly solicited Grassie to give him $300,000 to pay off his mortgage, according to case documents.

Project Managers Receive Kickbacks

Grassie also admitted to paying $40,000 to $95,000 to Shawn Fuller and James Conway, project managers for a prime contractor in charge of projects at both bases. The managers allegedly gave Grassie’s business renovation subcontracts at the buildings in exchange for money and free labor on personal property.

Conway pleaded guilty to related charges in August 2016 and Fuller pleaded guilty in November 2015, Fishman reported.

Prison Possible

Fishman says the conspiracy charge Grassie pleaded guilty to carries a maximum potential penalty of five years in prison. The charge for making unlawful kickbacks that Grassie pleaded guilty to carries a maximum sentence of 10 years in prison.

The charges also carry a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater.

Grassie’s sentencing hearing is scheduled for May 31, Fishman said.


Tagged categories: Bidding; Building operations; Contracts; Fraud; Government contracts; Maintenance + Renovation; Military; Renovation; U.S. Army

Comment from David Morgan, (2/28/2017, 10:50 AM)

So, was the un-named government employee who took the bribes also charged?

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