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Bribery Scandal Rocks Power Generation Industry
A former sales representative for a Lyndhurst, N.J.-based industrial pipe supply company has pleaded guilty to participating in a conspiracy to commit fraud and pay bribes in the power generation industry. Robert D. Rosenberg, of Florham Park, N.J., pleaded guilty to participating in a conspiracy to defraud Consolidated Edison of New York (Con Edison).
According to court documents, Rosenberg and others paid approximately $297,000 in bribes to a former department manager in the purchasing department at Con Edison. In exchange, the former department manager steered industrial pipe supply contracts to the company Rosenberg represented. The bribery scheme took place from approximately November 2003 through approximately August 2008.
Con Edison, a regulated utility headquartered in Manhattan, provides 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. The utility received more than $10,000 in federal funding each year between 2003 through 2008.
Rosenberg is charged with conspiracy, which carries a maximum penalty of five years in prison and a $250,000 fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victim of the crime, if either of those amounts is greater than the statutory maximum fine.
This is the second guilty plea to arise from an ongoing federal investigation of bid rigging, bribery, fraud, and tax-related offenses in the power generation industry. On Nov. 19, 2010, James M. Woodason, a former Con Edison manager, pleaded guilty to charges that he accepted and agreed to accept bribes from two Con Edison industrial pipe supply vendors.
The investigation is being conducted by the Antitrust Division’s New York Field Office, with the assistance of the FBI’s New York Division and the Internal Revenue Service Criminal Investigation. Con Edison cooperated with the investigation.
If you have information concerning bid rigging, bribery, tax offenses, or fraud in the power generation industry, 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 York
- Category: Public Corruption|White Collar Crime
- Source: DOJ Press Release ↗
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