Guilty plea in minority-contract case
Dennis F. Campbell, a former vice president for Cressona-based Schuylkill Products Inc., faces up to five years in prison on the felony charge of conspiracy to defraud the federal government. Over 14 years, Schuylkill Products and a subsidiary, CDS Engineers Inc., used a minority-owned firm in Connecticut as a front to get federally funded highway work in Pennsylvania, according to the guilty plea read in court.
While it appeared that West Haven, Conn.-based Marikina Construction Corp., was bidding for and performing the work, in reality those tasks were carried out by employees of Schuylkill Products and CDS, Assistant U.S. Attorney Bruce Brandler said.
"In essence, Schuylkill Products and CDS rented Marikina's name," Brandler told U.S. District Judge Sylvia Rambo. Marikina, which is owned by Romeo Cruz, received a payment, part of which was kicked back to Campbell and an unnamed CDS supervisor, Brandler said.
Campbell, 59, who is free on personal recognizance, spoke little other than to say "Yes, your honor" when questioned by Rambo. The judge did not set a sentencing date, and Brandler said that likely would happen after the completion of the investigation, in which Campbell is cooperating.
Brandler said investigators are examining whether a similar scheme was conducted in other states. No one other than Campbell has been charged.
"We're trying to take corrective action and do what the government wants on the program," Jim West, an attorney for Schuylkill Products, said later. "And we have taken some corrective action and we will take more as it goes along."
An attorney for Cruz and Marikina, Robert Lacobelle, declined comment on the case.
To conceal the role of Schuylkill Products and CDS, the companies prepared bids on Marikina's letterhead, put magnetic placards with the Marikina logo on their work vehicles and prepared phony payroll and vehicle lease records, prosecutors said.
Founded in 1950, Schuylkill Products manufactures concrete bridge components, while CDS installs them. Neither is eligible for the U.S. Department of Transportation's minority contracts.
Marikina was certified as a minority-owned firm by the Pennsylvania highway department, which distributes the federal money. Cruz is a naturalized American citizen of Filipino descent.
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