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Ex-owner of midstate company sentenced in contracting fraud case

Written by The Associated Press | Jun 30, 2014 12:26 PM
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(Harrisburg) -- The former president and part-owner of a Schuylkill County construction company has been sentenced to seven years in prison on charges he defrauded a federal program designed to increase minority participation in government contracts.

Schuylkill Products President and CEO Joseph Nagle has been sentenced in federal court in Harrisburg and fined more than $27,000.

Prosecutors say it was the largest-ever fraud of the government's minority set-aside program.

“Preventing and detecting DBE fraud are priorities for the Secretary of Transportation and the USDOT (U.S. Department of Transportation) Office of Inspector General,” says Doug Shoemaker, OIG Regional Special Agent in Charge. “This sentencing sends the clear signal that severe penalties await those who would attempt to subvert USDOT laws and regulations.”

Nagle was convicted in 2012 of counts including conspiracy, wire fraud and money laundering related to contracts received by his company and a subsidiary between 1993 and 2008. 

Prosecutors say the companies used a minority-owned firm in Connecticut as a front to get $136 million worth of federally funded highway work in Pennsylvania.

Nagle was president, CEOr and part- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS) until April 2009 when SPI was sold. SPI was based in Cressona, Schuylkill County.

Four other former executives have pleaded guilty in the case:

Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.

Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.

Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.

Ernest G. Fink, of Orwigsburg, Pennsylvania, SPI’s former Vice-President, Chief Operating Officer and part-owner is scheduled to be sentenced on July 14, 2014.

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