Pittsburgh Businessman Admits to MDT Contract Fraud

PITTSBURGH, Pa. – Arthur J. Bedway, Jr., 63, a Pittsburgh-area businessman, has confessed to a calculated scheme of deception and bribery, pleading guilty in federal court to charges of conspiracy, bribery of an agent of an organization receiving federal funds, and mail fraud. The guilty plea, entered before United States District Judge Cathy Bissoon, pulls back the curtain on a cynical attempt to manipulate a city contract for personal gain.

According to court documents revealed by United States Attorney David J. Hickton, Bedway owned Victory Security. Driven by profit, he concocted a fraudulent front company, Alpha Outfitters, falsely presenting it to the City of Pittsburgh as a Women’s Business Enterprise (WBE). This deceitful maneuver was the cornerstone of his plan to secure a lucrative contract for installing radios and mobile data terminals (MDTs) in Pittsburgh Police cars. It wasn’t a fair bid; it was a rigged game.

The scheme didn’t operate in a vacuum. Bedway conspired with Christine Ann Kebr, a city employee, and others to ensure Alpha Outfitters landed the MDT contract. The prosecution alleges that Bedway didn’t just rely on the false WBE designation; he actively paid Kebr for her complicity, a blatant act of bribery designed to grease the wheels of corruption. The details of the payments haven’t been fully released, but the implication is clear: influence was bought and sold.

Judge Bissoon has scheduled sentencing for Nov. 20, 2013, at 10:00 a.m. Bedway now faces a potential prison sentence of up to 35 years, a hefty fine of $750,000, or a combination of both. However, the final sentence will be determined by the seriousness of the offenses and Bedway’s criminal history, if any, adhering to Federal Sentencing Guidelines. For now, Bedway remains free on bond, awaiting his fate.

Assistant United States Attorneys Robert S. Cessar and Lee J. Karl are leading the prosecution, meticulously building the case against Bedway. The investigation, a joint effort between the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, underscores the commitment of federal agencies to root out public corruption and hold those who abuse their positions accountable.

This case serves as a stark reminder that even seemingly sophisticated schemes can unravel, and that attempts to defraud the public trust will be met with the full force of the law. The Grimy Times will continue to follow this case and report on the sentencing of Arthur J. Bedway, Jr., bringing transparency to the dark corners of public corruption in Pittsburgh and beyond.

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