Businessmen Plead Guilty In Inel Kickback Scheme

Two Los Angeles businessmen have pleaded guilty to trying to use household appliances, money and a luxury car to lure Idaho National Engineering Laboratory employees into a kickback scheme on federal contracts.

U.S. District Judge Lynn Winmill scheduled sentencing Jan. 8 for John Lakatos and Robert Serrano on one count each of conspiracy. In exchange for their guilty pleas, Assistant U.S. Attorney Joanne Rodriquez agreed to drop two other counts.

Rodriguez said in court that Lakatos owned Angeles Distributing and Serrano worked as a salesman for the company.

Using an alias, Serrano contacted two INEL employees in September 1994 and offered cars and money if they provided Angeles Distributing with contracts for office supplies. The employees reported the attempt to their supervisors, and the U.S. Department of Energy inspector general’s office set up a sting operation.

During the six-month investigation, Jodi Harris, an employee of INEL contractor Lockheed Martin Idaho Technologies Co., recorded more than 80 conversations, Rodriguez said. Harris received a television, a coffee maker and a clock radio for getting Angeles Distributing a $2,600 contract. Lakatos also sent her a money order in December for $500.

Eventually, Harris got the company a $250,000 contract for office supplies that were “inflated greatly” in price, Rodriguez said. In exchange, Lakatos wired $9,500 into her bank account and arranged to buy her a Lincoln Town Car from an Idaho Falls dealership.

When questioned, Serrano said he was set up by INEL employees and that the kickback scheme was all Lakatos’ idea, Rodriguez said. Lakatos said he never would actually have given Harris the car, and that the kickbacks were Serrano’s idea.

“We’re pleased we were able to help,” said Nick Nichols, spokesman for Lockheed Martin Idaho. “Our business ethics policy is to report things like this.”

Lakatos and Serrano each face up to five years in prison and a $200,000 fine, followed by up to three years on supervised release. They were released on their own recognizance this week pending the January sentencing.