Produce exec pleads guilty to rigging bids

Jacobson Produce, Inc., Bronx, NY, and co-owner Kenneth Jacobson, have pleaded guilty to rigging bids to supply produce to the New York City Department of Citywide Administrative Services (DCAS), which conducts food bids for city hospitals, jails and other facilities.

Jacobson arranged for his company to be paid $148,000 over a period of two years by a co-conspirator in exchange for agreeing not to bid for approximately 16 DCAS produce contracts, according to the DOJ.

"Today's case, the latest in a series of cases involving bid-rigging on New York City food contracts, demonstrates the Antitrust Div.'s commitment to prosecute schemes that inhibit competition for bidding on public contracts," says Charles A. James, assistant attorney general in charge of the DOJ's Antitrust Div.

Jacobson Produce and Kenneth Jacobson are charged with violating Section 1 of the Sherman Act, 15 U.S.C. ? 1, which carries a maximum fine of $10 million for a corporation, and three years imprisonment and a $350,000 fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

In addition, each of the defendants could be ordered to pay restitution to the victim for the full amount of the victim's loss.


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