DOJ : Matos Burgos inculpé — conspiration kickbacks Tricon

On June 1, 2005, the Department of Justice announced that a federal grand jury in Puerto Rico indicted Jorge L. Matos Burgos, a former Tricon Restaurants International executive, for conspiracy to commit mail fraud in a kickback scheme to defraud his employer. Tricon — owner and operator of fast-food restaurants on the Island — had recently been acquired by Encanto Restaurants of Puerto Rico.

According to the single-count indictment, Matos, as technical-services supervisor, solicited bids and selected the subcontractor for restaurant construction and maintenance. Between October 2000 and February 2004 he allegedly received $31,000 in payments from Albith Colón, president of Gate Engineering Corporation (electrical contractor), in exchange for favoring Gate with electrical contracts totaling more than $1 million. Although contracts were awarded in Tricon’s name, the company did not know about those payments, per the release.

Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal program, said such schemes deprive companies of employees’ honest services and of competitive, fair prices. On May 19, 2005 Gate and Colón had pleaded guilty to mail-fraud conspiracy in the same scheme and awaited sentencing. Matos faces 18 U.S.C. § 371: maximum five years in prison and a fine up to $250,000 (or twice the gain derived or victims’ loss, if greater).

It is the second case from a joint investigation by the Antitrust Division (Atlanta Field Office), the U.S. Attorney’s Office for the District of Puerto Rico, GSA-OIG (New York office) and SBA-OIG in Puerto Rico. Indictment ≠ conviction. Cousin: 673 (Gate/Colón plea 2005-05-19). The release invites tips on bid-rigging or kickbacks to Antitrust’s Atlanta Office. Primary: DOJ 2005-06-01.

Source: U.S. Department of Justice. https://www.justice.gov/archive/opa/pr/2005/June/05_at_299.htm