A demolition company’s former employee has pled guilty in a federal court of conspiring with a New Jersey-based scrap metal firm to pay less than market value for metal generated at demolition sites.
According to an October online report from Newark, New Jersey-based NJ.com, the plea came from a former senior vice president of a demolition firm who admitted accepting $340,000 from the CEO and president of Secaucus, New Jersey-based Cinelli Iron & Metal Co. Inc. The announcement of the plea was made by U.S. Attorney Craig Carpenito.
The NJ.com report names Frank Aiello as the person who made the plea, although it does not name the demolition firm.
Aiello reportedly sold scrap metal generated at demolition sites at below market value to Cinelli Iron & Metal in return for gifts and favors from the Cinelli executive officers, who benefitted from the padded profit margin. The collusion activity took place from 2013 to 2016, according to the plea.
Per legal document language, “The principal goal of the conspiracy was for Aiello to use his position to enrich himself by soliciting and accepting gifts, payments and other things of value from the two Cinelli conspirators in exchange for actions favorable to their business, and for the Cinelli officials to enrich themselves by secretly obtaining favorable action through corrupt means.”
The guilty plea for Aiello pertains to wire fraud charges that could carry a penalty of up to 20 years in prison. Aiello’s sentencing is scheduled for Jan. 15. 2019.