FM GENERATOR, INC FRAUD AND CONSPIRACY, OWNERS PLEAD GUILTY Canton Massachusetts

http://boston.fbi.gov/dojpressrel/pressrel07/fraudsentence062107.htm


The United States Attorney's Office
District of Massachusetts

Thursday, June 21, 2007


TWO CANTON BUSINESSMEN SENTENCED FOR FRAUD

BOSTON, MA - A father and son, principals of a Canton generator business, were sentenced yesterday for fraud charges arising from an illegal kickback scheme.

United States Attorney Michael J. Sullivan and Warren T. Bamford , Special Agent in Charge of the Federal Bureau of Investigation New England Field Division, announced today that MICHAEL MOLWAY, age 46, of Canton and his father, FRANCIS MOLWAY, JR., age 66, formerly of Canton, were sentenced to identical terms of 15 months imprisonment to be followed by 2 years of supervised release, a $40,000 fine, and a joint restitution payment of $172,103.

MICHAEL and FRANCIS MOLWAY both pleaded guilty to fifteen counts of conspiracy and mail and wire fraud violations on March 8, 2007.

At the earlier plea hearing, the prosecutor told the Court that had the case proceeded to trial the Governments evidence would have proven that the MOLWAYS, owners of F.M. Emergency Generator, Inc., 35 Pequit Street, Canton, engaged in a long term scheme during which they secretly made more than $380,000 in cash payments to an employee of AT&T in exchange for lucrative generator contracts with AT&T and other favorable business concessions. The MOLWAYS passed the cost of a portion of the kickback payments on to its customer, AT&T, in the form of falsely inflated invoices for generator sales.

The case was investigated by the Federal Bureau of Investigation New England Field Division. It was prosecuted by Assistant U.S. Attorney Lori J. Holik of Sullivans Economic Crimes Unit.

John c.
Cambridge, Massachusetts
U.S.A.