A PYMNTS Company

Three ex-GE execs convicted by jury for muni bond contract bid-rigging

By  |  May 13, 2012

Three ex-GE executives have been convicted by a federal jury for their roles in bid-rigging conspiracies for contracts to invest municipal bond proceeds. Dominick P. Carollo, Steven E. Goldberg and Peter S. Grimm had been indicted on July 27, 2010; the trial began on April 16, 2012.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    From 1999 to 2006, Carollo, Goldberg, and Grimm, along with financial institutions and insurance companies, conspired to offer a contract to public entities that would invest municipal bond proceeds. The conspirators then rigged bids for the investment agreements to increase the number and profitability of investment agreements awarded to the provider companies where they were employed.

    The ultimate effect was that state, county, and local governments ended up with below-market interest rates for the investment of the bond proceeds, leading to less money to go toward public works projects. The DOJ showed that this loss amounted to millions of dollars.

    Full content: DOJ Press Release

     

    Related content: The Adoption of Screening Tools by Competition Authorities (Ulrich Laitenberger & Kai Huschelrath, Zew Centre for Economic Research)

     

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.