Bhaskar Patel Sentenced in ESPCs Kickback and Bribery Scheme
June 22, 2020 - Horseheads, New York Indian Bhaskar Patel (69) was sentenced Friday, June 19, 2020 in Vermont Federal District Court to a term of three years of probation with conditions of supervised release in connection with a kickback and bribery scheme related to federal energy savings performance contracts (“ESPCs”).
Besides the three years of probation sentencing, the Vermont Federal District Court entered a forfeiture judgment of $2,536,119.19 against Bhaskar Patel.
Bhaskar Patel and ESPCs Kickback and Bribery Scheme
As per the case information, Bhaskar Patel, who was an employee of Schneider Electric Buildings America, solicited and accepted $2,536,119.19 in bribes and kickbacks associated with ESPCs from subcontractors to Schneider.And, the kickback scheme of Bhaskar Patel ran from June 6, 2011 through April 19, 2016 involving dozens of bribes and kickbacks from eight subcontractors to Schneider in the amounts ranging from $6,231 to $136,990.19.
According to the Court Documents and Case Information:
....Patel had altered and falsified a bid document submitted to Schneider Electric by a Vermont subcontractor. That subcontractor was bidding for work on an ESPC at the United States Department of Veterans Affairs, White River Junction, Vermont Medical Center (“VA-WRJ”). Patel selected a different subcontractor to work on Schneider’s project, and – in order to cover his tracks – falsified the losing local bid. From there, investigators uncovered a wide-ranging scheme to defraud the federal government, whereby Patel received in excess of $2.5 million in illegal bribes and kickbacks in exchange for awarding a piece of Schneider Electric’s enormous federal contracts to subcontractors who agreed to pay bribes and kickbacks for the work. Patel directed the subcontractors to pay him by check, often diverting funds through his adult son and daughter, and insisting on a bogus reference notation.
....Patel accepted illegal kickbacks and bribes in connection with a $70 million project for the United States Coast Guard (“USCG”) in Aguadilla, Puerto Rico; a $24.7 million project for the United States Department of Agriculture (“USDA”) in Albany, California; a $12.6 million project for the United States General Services Administration (“GSA”) in St. Croix, U.S. Virgin Islands; a $21.8 million project for GSA in San Juan, Puerto Rico and St. Thomas, U.S. Virgin Islands; a proposed project of $42.4 million for work on the VA medical centers in Vermont, Massachusetts, Rhode Island, and Maine; and a $114.3 million project for the U.S. Navy for work on the Naval base in Coronado, California.
For each contract named in the Information, Patel, a Senior Project Manager, was authorized and directed by Schneider to obtain bids from subcontractors and recommend for selection the subcontractors that would be awarded a contract under an ESPC. Schneider further authorized and directed Patel to -- post-selection of a subcontractor -- negotiate change orders, price changes, and oversee and manage subcontractors. Patel knew subcontractors provided gratuities with the intent of obtaining favorable treatment from Patel and Schneider in connection with existing and/or future ESPC contracts awarded by various government agencies to Schneider.
Bhaskar Patel's Guilty Plea
Bhakar Patel pleaded guilty on August 6, 2018 for two counts:- One count of accepting illegal kickbacks in connection with federal contracts, a violation of 41 U.S.C. §§ 8702 and 8707
- One count of accepting bribes in connection with federal contracts, a violation of 18 U.S.C. § 666.