A federal grand jury in Bridgeport, Connecticut, has indicted a former manager from a major aerospace engineering company and five executives from outsourcing engineering suppliers. They are accused of participating in a conspiracy to restrict hiring and recruiting among their companies. This alleged conspiracy impacted thousands of skilled workers in the aerospace industry involved in aircraft component design, manufacturing, and servicing for both commercial and military purposes.
The one-count felony indictment was unsealed at the U.S. District Court for the District of Connecticut. It names six individuals: Mahesh Patel, Robert Harvey, Harpreet Wasan, Steven Houghtaling, Tom Edwards, and Gary Prus. These individuals allegedly conspired with others to prevent hiring or soliciting employees from each other’s companies.
This case marks the first indictment in an ongoing investigation into labor market allocation within the aerospace engineering services sector. Patel is identified as a leader due to his position as a common customer for the suppliers involved. He had been previously charged by complaint and released on a $100,000 appearance bond after appearing before a federal magistrate judge last week. The other defendants are expected to appear before various federal district courts this week.
Assistant Attorney General Jonathan S. Kanter of the Department of Justice’s Antitrust Division stated: “Conduct that corrupts competition for workers has no place in our economy.” He emphasized that their investigation uncovered "a prolonged and widespread scheme" affecting aerospace workers' career planning and pay competitiveness.
Peter S. Jongbloed, Counsel to the U.S. Attorney for the District of Connecticut, noted: “No one should be illegally denied the opportunity to pursue better jobs, higher pay and greater benefits.” He highlighted the importance of maintaining fairness in labor markets within defense and aerospace sectors.
James R. Ives from DCIS commented on anticompetitive practices undermining procurement processes designed for equity among government business parties: “The DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is fully committed to prioritizing investigations involving corruption of the DoD labor market.”
The indictment details how defendants recognized mutual financial benefits from reducing labor costs by restricting employee movement between companies. This case results from an ongoing federal antitrust investigation conducted by several agencies including the Antitrust Division's New York Office.
For those with information related to this investigation, contact can be made through 888-647-3258 or http://www.justice.gov/atr/report-violations.
It is important to note that an indictment alleges crime commission but presumes all defendants innocent until proven guilty beyond reasonable doubt in court.
