The U.S. District Court for the District of Connecticut has unsealed a criminal complaint against Mahesh Patel, a former aerospace outsourcing executive. Patel is accused of engaging in a long-term conspiracy with managers and executives from various outsource engineering suppliers to limit the hiring and recruiting of engineers and skilled laborers among their companies.
According to court documents, Patel, who served as director of global engineering services at a major aerospace company, acted as an intermediary between conspiring suppliers. He appeared remotely before a federal court in Hartford, Connecticut, following his arrest on charges of conspiracy in restraint of trade. Released under certain conditions including travel restrictions and a $100,000 appearance bond, this charge marks the first in an ongoing federal antitrust investigation.
Assistant Attorney General Jonathan Kanter stated: “The Antitrust Division, together with our law enforcement partners, have prioritized rooting out conspiracies in labor markets.” He emphasized that “thousands of workers have been victimized over a long period of time.”
Peter S. Jongbloed from the U.S. Attorney’s Office for the District of Connecticut highlighted the importance of maintaining fair labor markets in the state's defense and aerospace sectors: “No one should be illegally denied the opportunity to pursue better jobs, higher pay and greater benefits.”
James R. Ives from the Defense Criminal Investigative Service (DCIS) affirmed their commitment to ensuring accountability: “Protecting the integrity of the Department of Defense (DoD) procurement process is a top priority.”
The affidavit supporting the complaint alleges that Patel enforced an agreement among aerospace companies not to hire or recruit each other's employees. It claims that he reprimanded suppliers who violated this agreement and threatened noncompliant suppliers with reduced project access.
If convicted under the Sherman Antitrust Act for conspiracy to restrain trade, Patel faces up to 10 years in prison and fines up to $1 million. This fine could potentially double based on financial gains or losses related to the crime.
It is important to note that a criminal complaint is merely an allegation, and defendants are presumed innocent until proven guilty beyond reasonable doubt.
