WASHINGTON — A New Jersey jury convicted a former project manager for his  central role in conspiracies that spanned seven years and involved kickbacks in  excess of $1.5 million at two Environmental Protection Agency (EPA) Superfund  sites in New Jersey, the Department of Justice announced today.  The jury returned guilty verdicts on 10  counts charged in the indictment against Gordon D. McDonald, which was filed on  Aug. 31, 2009.

In addition to today’s conviction,  to date, eight individuals and three companies have pleaded guilty to charges  arising out of this investigation.

After a two-week trial, McDonald, a former project manager for a prime contractor, was convicted  of engaging in separate bid-rigging, kickback and/or fraud conspiracies with  three subcontractors at two New Jersey Superfund sites – Federal Creosote in  Manville, N.J., and Diamond Alkali in Newark, N.J.  He was also convicted of engaging in an  international money laundering scheme, major fraud against the United States,  accepting illegal kickbacks, committing two tax violations and obstruction of  justice. The various conspiracies took  place at different time periods from approximately December 2000 until approximately April 2007.  McDonald was acquitted on counts eight and nine involving certain fraud and kickback charges.

“Today’s guilty verdict sends a clear message that  corrupt purchasing officials will be held accountable for engaging in  fraudulent schemes designed to undermine the government’s competitive  contracting practices,” said Bill Baer, Assistant Attorney General in charge of  the Department of Justice’s Antitrust Division.   “The Antitrust Division is committed to ensuring there is fair play and competition  in our markets.”

As part of  the conspiracies, McDonald and co-conspirators at his former company accepted  kickbacks from sub-contractors in exchange for the award of sub-contracts at  Federal Creosote.  McDonald provided  co-conspirators at Bennett Environmental Inc., a Canadian-based company that  treats and disposes of contaminated soil, with bid prices of their competitors,  which allowed them to submit higher bid prices and still be awarded the  sub-contracts.  In exchange for  McDonald’s assistance, Bennett Environmental, Inc. provided him with over $1.5  million in kickback payments.

According to court documents, McDonald also  accepted kickbacks in exchange for the award of sub-contracts at the Federal  Creosote and Diamond Alkali sites from the owner of JMJ Environmental Inc., a  wastewater treatment and chemical supply company, and the co-owner of National  Industrial Supply LLC, an industrial pipes supplier.  He participated in a conspiracy with the  owner of JMJ and co-conspirators to rig bids and allocate sub-contracts at  inflated prices for wastewater treatment supplies and services at Federal Creosote.

The cleanup at Federal Creosote was  primarily funded by the EPA.  An  interagency agreement between the EPA and the U.S. Army Corps of Engineers designated that the U.S. Army Corps of Engineers hire the prime contractors at Federal Creosote.  According to a settlement with the EPA and  the New Jersey Department of Environmental Protection, Tierra Solutions was  required to fund remedial action and maintenance of Diamond Alkali.  Tierra Solutions hired the prime contractor  for the remedial action and maintenance of Diamond Alkali.

Sentencing is  scheduled for Jan. 6, 2014, before Judge Susan D. Wigenton.  To date, more than $6 million in criminal  fines and restitution have been imposed, and five individuals have been  sentenced to serve more than 10 years in total prison time.

Today’s  conviction is the result of an ongoing federal antitrust investigation being  conducted by the Antitrust Division’s New York Office, the EPA Office of  Inspector General and the Internal Revenue Service-Criminal Investigation.  Anyone with information concerning bid  rigging, kickbacks, tax offenses or fraud relating to subcontracts awarded at  the Federal Creosote Superfund site or Diamond Alkali Superfund site should  contact the Antitrust Division’s New York Office at 212-335-8000