United States Attorney's Office District of Connecticut
Press Release

OWNER OF CHESHIRE CARTING COMPANY PLEADS GUILTY TO FEDERAL RACKETEERING CONSPIRACY CHARGE

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that ARTHUR WALLINGER, also known as AJ Wallinger, age 42, of Blacks Road, Cheshire, Connecticut, pleaded guilty today before Senior United States District Judge Ellen Bree Burns in New Haven to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO). WALLINGER is the owner and operator of AJ Waste Systems, a carting company located in Cheshire.

According to documents filed with the Court and statements made in court, WALLINGER today admitted that, along with others, he conspired to perpetuate a system, commonly called the “property rights system.” Carters engaged in the property rights system would not service or compete for other carters’ customers. The property rights system essentially destroys free enterprise, allowing the participating carters to artificially inflate their prices and leaving waste removal customers with no other options. In this scheme, which was directed at commercial and municipal customers, participating carters agreed to quote inflated prices to customers controlled by other carters.

On February 15, 2005, the FBI surveilled a meeting between WALLINGER and several co-conspirators at a restaurant in Waterbury. At this meeting, WALLINGER agreed to participate in the property rights system by not interfering with a proposed price increase about to be put through by another participating company. WALLINGER also agreed not to attempt to take any accounts owned by other participating companies in exchange for a reciprocal promise that other participants would not solicit his accounts.

Approximately two weeks after the meeting, a co-conspirator was instructed to tell WALLINGER that one of WALLINGER’s customers had solicited the co-conspirator’s company for a price quote and would be quoted an inflated price so as not take the account from WALLINGER. Specifically, the co-conspirator was instructed to tell WALLINGER that his co-conspirators were “taking care of him.” The co-conspirator was advised, however, to “speak in code” because WALLINGER did not like to discuss these matters on the phone.

To date, 32 individuals and 10 businesses have been charged with various offenses stemming from a long-term investigation into the waste-hauling industry in Connecticut and eastern New York.

Judge Burns has scheduled sentencing for September 14, 2007, at which time WALLINGER faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

This matter is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the United States Department of Labor, Office of Inspector General. The United States Marshals Service, the Drug Enforcement Agency’s Office of Professional Responsibility, and the Connecticut Department of Correction have provided critical assistance in the Investigation. Assistant United States Attorneys Michael J. Gustafson, Raymond F. Miller, Henry K. Kopel and Anthony E. Kaplan are prosecuting this case.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov