FAIRFIELD (dpa-AFX) - A federal jury in New York City convicted three former General Electric Co. (GE) affiliates executives for their participation in conspiracies related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced on Friday.
Dominick Carollo, Steven Goldberg and Peter Grimm were found guilty on all remaining counts of a superseding indictment in the U.S. District Court for the Southern District of New York.
The Department said that Carollo, Goldberg and Grimm participated in separate fraud conspiracies with various financial institutions and insurance companies and their representatives at various time periods from as early as 1999 until 2006.
These institutions and companies, or 'providers,' offered a type of contract, known as an investment agreement, to state, county and local governments and agencies throughout the United States. The public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they had issued to raise money for, among other things, public projects, the Department said.
The Justice Department noted that a total of eighteen individuals have been charged as a result of the department's ongoing municipal bonds investigation. Including frida's convictions, a total of 15 individuals have been convicted and three await trial. Additionally, one company has pleaded guilty.
Each of the fraud conspiracy charges carries a maximum penalty per count of five years in prison and a $250,000 fine. The maximum fines for the fraud conspiracy offense may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
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