Trash hauler pleads guilty to racketeering
Kevin J. O’Connor, United States Attorney
for the District of Connecticut, announced that David Magel of Baldwin
Place, New York, pleaded guilty to one count of conspiring to violate
the federal Racketeer Influenced and Corrupt Organizations Act (RICO).
Magel is the general manager at CRP Carting, a carting company located
in Elmsford, New York.
According to documents filed with the Court and
statements made in court, Magel admitted that he conspired to perpetuate
a system, commonly called the “property rights system.”
In this scheme, which was principally directed at commercial and
municipal customers, participating carters agreed to quote inflated
prices to customers controlled by other carters. Magel admitted
that he participated in the affairs of the enterprise by agreeing
to respect the unwritten rules of the property rights system.
On June 8, 2006, a federal grand jury in New Haven
returned an Indictment charging Magel and several other individuals
and businesses on various charges stemming from a long-term investigation
in the waste-hauling industry in Connecticut and eastern New York.
Judge Burns has scheduled sentencing for October
25, 2006, at which time Magel will face a maximum term of imprisonment
of 20 years and a fine of up to $250,000.