Jacobi Industries owner pleads guilty

ISLIP, N.Y., Sept. 21 (UPI) -- The president and owner of New York-based Jacobi Industries Inc. has pleaded guilty to conspiring to rig bids on U.S. Department of Defense contracts.

Roger Jacobi pleaded guilty in the U.S. District Court in Islip, N.Y., to a felony charge of bid rigging. The case involves contracts for military tie-down equipment and cargo securing systems.

Jacobi Industries is a Department of Defense provider of the military tie-down equipment and cargo securing systems used to secure vehicles, aircraft, munitions and shipping containers, among other military applications.

Jacobi has agreed to pay a criminal fine of $20,000 and to cooperate with the department's ongoing investigation as part of the plea agreement. He could also serve up to six months in prison.

U.S. Justice Department officials say Jacobi and co-conspirators agreed not to compete by not submitting prices or bids against each other on certain contracts. The conspiracy took place from November 2001 to January 2005.

"Today's charges demonstrate our ongoing commitment to prosecute those who deprive the U.S. military of the benefits of competitive bidding on taxpayer funded contracts," said Thomas O. Barnett, assistant attorney general in charge of the department's Antitrust Division, in a statement.

The terms of the plea agreement are subject to court approval.