NEWARK, N.J. - The assistant purchasing manager for a company that manufactured military parts for the U.S. Navy today admitted soliciting and receiving kickbacks in return for providing subcontract work to a Cherry Hill, New Jersey, company, Acting U.S. Attorney William E. Fitzpatrick announced.
Christopher Sanchirico, 55, of King of Prussia, Pennsylvania, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to violate the federal anti-kickback act. He was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Sanchirico was the assistant purchasing manager for an entity identified in the information as “Subcontractor 1," which was located in Philadelphia and manufactured shock-hardened circuit breakers and switchgears for installation on U.S. Navy surface ships, submarines, and aircraft carriers. Subcontractor 1 performed work on multiple U.S. Navy and Defense Logistics Agency maritime contracts as a first-tier subcontractor to a prime contractor working for the United States.
In July 2013, Sanchirico made an agreement with an entity identified in the information as “Subcontractor 2," a machine shop in Cherry Hill, through Subcontractor 2’s president, identified in the information as “Individual 1." In return for his assistance in securing a manufacturing contract between Subcontractor 1 and Subcontractor 2, Sanchirico received between five and 10 percent of the gross revenue from circuit breaker and switchgear components that Subcontractor 2 provided to Subcontractor 1. Subcontractor 2’s secretary, identified in the information as “Individual 2," maintained records of the payments and sometimes made bank withdrawals for the kickbacks when Individual 1 was unable to do so.
From 2013 to 2016, Sanchirico received approximately $150,000 in cash kickbacks from Subcontractor 2.
Sanchirico faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 23, 2018.
Acting U.S. Attorney Fitzpatrick credited agents of the Naval Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont in Newport, Rhode Island, and agents of the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the investigation leading to the guilty plea. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, under the direction of Acting U.S. Attorney Louis D. Lappen, for its assistance.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense counsel: Michael Drossner Esq., Philadelphia
Source: U.S. Department of Justice, Office of the United States Attorneys
