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Former Owner of Petrocelli Electric Company Pleads
Guilty to Making Illegal Payments to Union Official
LEV L. DASSIN, the Acting United States Attorney for
the Southern District of New York, JOSEPH M. DEMAREST, JR., the
Assistant Director-in-Charge of the New York Field Division of
the Federal Bureau of Investigation ("FBI"), ROSE GILL HEARN, the Commissioner of the New York City Department of Investigation
("DOI"), and DANIEL R. PETROLE, the Acting Inspector General of
the United States Department of Labor ("DOL-OIG"), announced
today that SANTO PETROCELLI, SR., the former owner and chairman
of Petrocelli Electric Company ("PEC"), pleaded guilty today in
Manhattan federal court to making tens of thousands of dollars
worth of payments to BRIAN McLAUGHLIN, a former Business
Representative of Local 3 of the International Brotherhood of
Electrical Workers, in violation of federal labor law.
According to the felony Information to which
PETROCELLI, SR., pleaded guilty before United States District
Judge MIRIAM GOLDMAN CEDARBAUM, and statements at his plea
proceeding:
At the time of the unlawful payments, PEC was an
electric company based in Queens, New York, that employed Local 3
union members and entered into contracts with the City of New
York to perform work involving the maintenance and installation
of street lights and traffic signals.
During his guilty plea, PETROCELLI, SR., admitted that
the unlawful payments to McLAUGHLIN took the form of cash and the
use of a PEC car given to McLAUGHLIN for McLAUGHLIN's use. PETROCELLI, SR., further admitted that, at the time he made those
payments, he was aware that they were unlawful because he was an
employer of Local 3 union members and McLAUGHLIN was a labor
representative of those members.
PETROCELLI, SR., pleaded guilty to one count of making
an unlawful payment to a labor representative, which carries a
maximum potential penalty of five years in prison. PETROCELLI,
SR., is scheduled to be sentenced by Judge CEDARBAUM on November
5, 2009, at 4:30 p.m.
McLAUGHLIN previously pleaded guilty, on March 7, 2008,
to racketeering and to making a false statement on a loan
application. McLAUGHLIN was sentenced on May 20, 2009, to ten
years in prison by United States District Judge RICHARD J.
SULLIVAN.
The United States Attorney's Office further announced
today that it has entered into a Non-Prosecution Agreement with
PEC and will not pursue criminal charges against PEC for crimes
related to the payments and gifts given by PETROCELLI, SR., to
BRIAN McLAUGHLIN. That decision was made in accordance with the
factors set forth in the Department of Justice Principles of
Federal Prosecutions of Business Organizations, including
consideration of, among other things: (1) the fact that
PETROCELLI, SR., who was the PEC officer responsible for giving
the illegal payments and gifts to McLAUGHLIN, has pleaded guilty
to that offense; (2) the fact that PETROCELLI, SR., left PEC in
2006, has not been involved in PEC's business operations since
that time, and will have no future role in the operation of PEC;
and (3) the negative effect that charges against PEC would have
on the company's innocent employees and legitimate activities.
Mr. DASSIN praised the investigative work of the FBI,
DOI, and DOL-OIG.
Assistant United States Attorney LISA ZORNBERG is in
charge of the prosecution.
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