Landmark, DiCarlo and their top execs sentenced in bid-rig case

Three executives and two broadliners were sentenced to pay a total of $4.23 million in restitution by the U.S. Department of Justice (DOJ) for their roles in rigging bids on more than $200 million worth of food contracts awarded by the New York City Board of Education (NYCBOE). The executives were also sentenced to serve jail time.

Gordon Kerner, president and co-owner of Landmark Food Corp., Holtsville, NY, was sentenced by Judge Jed S. Rakoff of the U.S. District Court in Manhattan to 14 months in prison, and Kerner and Landmark together must pay a total of $1.5 million in restitution to the NYCBOE. Kerner also was ordered to pay a $74,000 fine.

Vincent DiCarlo, president and co-owner, DiCarlo Distributors, Inc., Holtsville, NY, was sentenced by Judge Rakoff to 5-1/2 months in prison and 5-1/2 months of home confinement. John DiCarlo, Sr, vice president and co-owner of DiCarlo Distributors, was sentenced to six months in prison and six months of home confinement. In addition, the two DiCarlo executives were ordered to pay fines of $130,000 each and jointly to pay $530,000 in restitution to the NYCBOE. The company itself was sentenced to pay an additional $2.2 million in restitution to the NYCBOE.

All told, some 22 individuals and 13 companies were charged in the case on May 31 and June 1, 2000, by the New York field office of the DOJ's Antitrust Div. All have agreed to plead guilty except David Salomon and his company, M&F Meat Products Co., East Orange, NJ. The latter were convicted in June after a three-week trial.

The government is seeking to have all defendants pay more than $20 million in restitution altogether, the amount the NYCBOE was overcharged.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Podcast transcript: Dutch Bros CEO Christine Barone

A Deeper Dive: Here is the transcript for the May 29 podcast with the chief executive of the drive-thru coffee chain, who talks real estate, boba and other topics.

Financing

McDonald's value perception problem is with its lighter users

The Bottom Line: The fast-food giant took the extraordinary step of publicizing average prices this week. It was speaking to its less-frequent customers, who are a lot less likely to say the chain is a good value.

Financing

CEO pay soared last year, despite a volatile period for restaurants

Pay for CEOs at publicly traded restaurants took off last year, but remains lower than average among public companies, even as tenure for the position remains volatile.

Trending

More from our partners