Three ex-GE execs convicted by jury for muni bond contract bid-rigging
May 11, 2012
Three ex-GE executives have been convicted by a federal jury for their roles in bid-rigging conspiracies for contracts to invest municipal bond proceeds. Dominick P. Carollo, Steven E. Goldberg and Peter S. Grimm had been indicted on July 27, 2010; the trial began on April 16, 2012.
From 1999 to 2006, Carollo, Goldberg, and Grimm, along with financial institutions and insurance companies, conspired to offer a contract to public entities that would invest municipal bond proceeds. The conspirators then rigged bids for the investment agreements to increase the number and profitability of investment agreements awarded to the provider companies where they were employed.
The ultimate effect was that state, county, and local governments ended up with below-market interest rates for the investment of the bond proceeds, leading to less money to go toward public works projects. The DOJ showed that this loss amounted to millions of dollars.
Full content: DOJ Press Release
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