UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA,
Plaintiff,
v.
MARY BURKE,
Defendant.
|
|
|
|
|
|
|
|
|
|
|
|
INFORMATION
Criminal No.: 99CR263
Filed: 03/18/1999
|
COUNT ONE
The United States of America, acting through its
attorneys, charges:
Conspiracy
The Relevant Parties And Entities
- Except as otherwise noted, at all times relevant
to this Information:
- The defendant MARY BURKE was the owner and
president of Burke, Inc., a provider of promotional and display
materials and services, located in Fairfield, Connecticut.
- Domecq Importers, Inc. ("Domecq Importers")
imported and distributed several brands of alcoholic beverages,
including Sauza tequila and Presidente brandy. Domecq Importers
was Burke, Inc.'s largest customer. Prior to 1990, Domecq
Importers had its headquarters in Larchmont, New York; from 1991
through 1996, its headquarters were located in Old Greenwich,
Connecticut.
- Gabriel Sagaz, a co-conspirator not named as a
defendant herein, was the vice president of marketing, and later
the president, of Domecq Importers. Along with other employees
of Domecq Importers, including other senior executives, Sagaz was
responsible for selecting and contracting with outside vendors to
provide promotional and display materials and services, and to
design, manufacture, and supply items -- such as T-shirts,
glasses, umbrellas, banners, and signs -- which were used to
promote sales of Domecq Importers' brands. Sagaz and these other
employees controlled funds that Domecq Importers had allocated
for the marketing and promotion of its various brands, including
for the payment of vendors.
- Domecq Importers had a corporate policy
favoring competitive bidding as the method by which Domecq
Importers would select outside vendors.
Statutory Allegations
- From at least as early as September 1989, and
continuing up to and including August 1996, in the Southern
District of New York and elsewhere, the defendant MARY BURKE and
other persons known and unknown, unlawfully, wilfully, and
knowingly did conspire, combine, confederate, and agree together
and with each other to violate Title 18, United States Code,
Sections 1341 and 1346.
- It was a part and object of the conspiracy that
the defendant MARY BURKE, and her co-conspirators, having devised
and intending to devise a scheme and artifice to: (a) defraud
Domecq Importers; (b) obtain money and property from Domecq
Importers by means of false and fraudulent pretenses,
representations, and promises; and (c) deprive Domecq Importers
of the intangible right to the honest services of certain of its
executives and employees; and, for the purpose of executing such
scheme and artifice and attempting to do so would and did (i)
place in post offices and authorized depositories for mail
matter, matters and things to be sent and delivered by the United
States Postal Service; (ii) take and receive from the mails such
matters and things; and (iii) knowingly cause such matters and
things to be delivered by mail according to the directions
thereon, in violation of Title 18, United States Code, Sections
1341 and 1346.
The Means And Methods Of The Conspiracy
Among the means and methods of the conspiracy were the
following:
- From at least as early as 1989 until at least as
late as August 1996, Sagaz, certain other senior executives of
Domecq Importers, and certain other employees of Domecq Importers
(collectively referred to as the "Domecq Co-conspirators") caused
Domecq Importers to enter into hundreds of contracts with Burke,
Inc. for the production of promotional and display materials and
the provision of services. These contracts were worth a total of
at least $15 million. During this time, the defendant MARY BURKE
paid kickbacks totaling approximately $750,000 to: (a) the Domecq
Co-conspirators, and (b) persons or entities designated by the
Domecq Co-conspirators.
- In order to generate a substantial portion of the
funds used to pay the kickbacks, certain of the Domecq Co-conspirators arranged for Domecq Importers to issue purchase
orders to Burke, Inc. for contracts that had not been awarded in
accordance with Domecq Importers' competitive bidding policy.
The defendant MARY BURKE then submitted numerous false and
fraudulent invoices to Domecq Importers (the "fraudulent
invoices"). The fraudulent invoices either: (a) reflected
transactions that were entirely fictitious; or (b) sought payment
for substantially more goods than Burke, Inc. had actually
produced for Domecq Importers.
- Certain of the Domecq Co-conspirators then
approved the fraudulent invoices for payment and Domecq Importers
paid them.
- After the invoices were paid, the defendant MARY
BURKE, at the direction of Gabriel Sagaz, used the funds
generated through the fraudulent invoices to make payments to the
Domecq Co-conspirators. These payments were made either: (a) to
the Domecq Co-conspirators directly; (b) to various entities,
which were simply aliases for certain of the Domecq Co-conspirators; or (c) to family members and friends of certain of
the Domecq Co-conspirators.
- On occasion, the defendant MARY BURKE was allowed
to keep a portion of the funds obtained from Domecq Importers by
means of the fraudulent invoices.
- Gabriel Sagaz also authorized the defendant MARY
BURKE to receive funds from a company that manufactured display
materials for Domecq Importers (the "Manufacturer") as
commissions for BURKE's role in supervising the production of
display materials that BURKE had designed. The Manufacturer,
which was located in Manhattan, paid these commissions to an
entity that was controlled by BURKE and one other person. This
entity then paid one-half of the commissions received from the
Manufacturer to Sagaz.
Overt Acts
- In furtherance of the conspiracy, and to effect
the objects thereof, the following overt acts were committed in
the Southern District of New York, and elsewhere:
- Between September 1989 and January 1995, the
defendant MARY BURKE, at the direction of Gabriel Sagaz, issued
more than 130 checks to the Domecq Co-conspirators or to persons
or entities designated by them.
- Between September 1989 and January 1995,
Gabriel Sagaz, a co-conspirator not named as a defendant herein,
deposited at least 37 of the checks that he received from the
defendant MARY BURKE into a bank account that he maintained at
Chemical Bank in Manhattan.
- Between September 1989 and January 1995, the
defendant MARY BURKE, together with the Domecq Co-conspirators,
caused Domecq Importers to issue dozens of false and fraudulent
purchase orders to Burke, Inc. and caused Burke, Inc. to issue
dozens of false and fraudulent invoices to Domecq Importers.
These documents were regularly sent via United States Mail from
the headquarters of Domecq Importers in either Larchmont, New
York or Old Greenwich, Connecticut to the offices of Burke, Inc.
in Fairfield, Connecticut, and vice versa.
(Title 18, United States Code, Section 371.)
_______________/s/________________
JOEL I. KLEIN
Assistant Attorney General
Antitrust Division
U.S. Department of Justice
_______________/s/________________
RALPH T. GIORDANO
Chief, New York Field Office
Antitrust Division
U.S.Department of Justice
|
|
_______________/s/________________
MARY JO WHITE
United States Attorney
|
|