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New Jersey Industrial Pipe Supply Company and Owner Plead Guilty to Fraud and Bribery Conspiracy
A second New Jersey industrial pipe supply company and its owner pleaded guilty today to participating in a conspiracy to commit fraud and pay bribes to a purchasing manager at Consolidated Edison of New York (Con Edison) in return for the manager’s efforts to steer contracts to the company, according to a federal investigation.
Bernard Grobart of New York City and his company, Teneyck Inc., formerly known as Neill Supply Co. Inc. of Lyndhurst, N.J., pleaded guilty to participating in a conspiracy to defraud Con Edison. Grobart also pleaded guilty to an obstruction count for instructing a subordinate employee at the company to delete a subpoenaed electronic document.
According to the charge, Grobart and Robert D. Rosenberg, a former sales broker for Neill Supply, paid approximately $297,000 in cash bribes to James M. Woodason, a department manager of the purchasing department at Con Edison. In return, Woodason steered Con Edison industrial pipe supply contracts to Neill Supply by secretly providing Rosenberg with confidential competitor bid information, thereby causing Con Edison to pay higher, non-competitive prices for materials.
The conspiracy took place from approximately November 2003 through approximately August 2008, the department said. Grobart also directed an employee of Neill Supply to destroy an electronic document that tallied the bribe payments in order to prevent the production of the document to a federal grand jury.
Grobart and Teneyck are scheduled to be sentenced on June 24, 2011. According to the charge, Grobart and Rosenberg paid approximately $297,000 in cash bribes to Woodason, a department manager of the purchasing department at Con Edison.
The investigation is ongoing, with several other individuals and companies implicated in the conspiracy. Con Edison is a regulated utility headquartered in Manhattan, providing electric service to approximately 3.2 million customers and gas service to approximately 1.1 million customers in New York City and Westchester County, N.Y.
Anyone with information concerning bid rigging, bribery, tax offenses or fraud in the power generation industry should contact the Antitrust Division’s New York Field Office at 212-264-9308, visit www.justice.gov/atr/contact/newcase.htm, or contact the FBI’s New York Division at 212-384-3252.
Key Facts
- State: New Jersey
- Category: White Collar Crime|Public Corruption|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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