Bhaskar Patel, 69 years old, from Horseheads, New York, has been found guilty and sentenced for accepting bribes and kickbacks from companies in an attempt to receive the federal energy savings performance contracts (ESPCs). Patel was a project manager for Schneider Electric Buildings America, inc (aka Schneider Electric). He was in charge of awarding government contracts to subcontracting companies when needed. His crimes were discovered as part of a larger government investigation into Schneider and its business practices.
In cases involving federal bribery charges and charges related to illegal kickbacks, it is nearly certain that criminal defense counsel, like our top criminal lawyers in Burlington, would have advised the client not to speak directly to the government absent a proffer agreement.
Between June 6, 2011, and April 19, 2016, Bhaskar Patel sought and received $2,536,119.19 in illegal payoffs and bribes. Eight subcontractors paid him bribes over these five years. The bribe amounts ranged from under $10,000 to over $136,000.
Schneider Electric, based in Carrollton, Texas, offers electrical solutions for buildings and data facilities globally. Schneider Electric held government contracts to install energy-saving equipment like solar panels, environmentally friendly insulation, and L.E.D. lights in government buildings. The Justice Department announced that Schneider Electric would pay $11 million in fines relating to taking kickbacks and overcharging on eight ESPCs.
Schneider admitted that they had overcharged the Department of the Navy, Department of Agriculture, and the General Service administration over $1.7 million for design costs that were not allowed under the ESPCs. As Schneider Electric said, they did this by overcharging for other materials or “burying” the charges, as the practice became known. Schneider admitted that they were in violation of 18 U.S.C. § 1343 and had committed wire fraud. The company has agreed to pay $1.7 million in forfeiture.
The projects for which Bhaskar Patel accepted bribes and kickbacks are as follows: a $70 million project for the United States Coast Guard Puerto Rico; a $24.7 million project for the United States Department of Agriculture California; a $12.6 million project for the United States General Services Administration in St. Croix; a $21.8 million project for G.S.A. in San Juan and St. Thomas; a suggested plan of $42.4 million for work on the V.A. medical centers in Massachusetts, Vermont, Maine, and Rhode Island; and a $114.3 million project for the U.S. Navy for work on the Naval base in Coronado, California.
“Federal contractors must be above board in their dealings. The U.S. General Services Administration Office of Inspector General will continue to aggressively pursue those who engage in bribery and kickback schemes,” said Special Agent-in-Charge, Luis Hernandez in a statement.
As a Senior Project Manager at Schneider Electric, Patel was responsible for getting bids and recommending specific subcontractors to receive contracts from the ESPCs. He also was in charge of managing the subcontractors and negotiating prices. Because of his position, Mr. Patel knew these subcontractors would provide kickbacks and outright bribes to him and Schneider Electric to receive the contracts. He pursued this scheme to enrich both himself and the company for five years.
Mr. Patel pleaded guilty in United States Federal Court to one count each of accepting bribes in connection with Federal Contracts and accepting kickbacks in connection with Federal contracts. He received three years of supervised probation and a judgment of $2,536,119.19 by Chief Judge Geoffrey Crawford.
In an interview, United States Attorney for the District of Vermont, Christina Nolan, said, “Mr. Patel’s conduct was motivated by a corrupt culture and greed, and I am proud of our prosecutors, staff, and federal law enforcement partners that investigated this complex fraud and convicted Mr. Patel. His scheme ran for years, conned millions of dollars, and betrayed the trust expected of government contractors when they receive American taxpayer dollars and have the honor of working with the federal government. The U.S. Attorney’s Office is committed to fighting the financial scourge imposed by procurement fraud and will vigorously enforce our criminal laws against those responsible for this conduct.”
