An Annapolis man and his drapery business were indicted yesterday on 14 counts of mail fraud, charged with trying to cheat the U.S. government out of more than $11 million.
Jeffrey Paul Goldstein of the 800 block of Coach Way and his company, Commercial Drapery Contractors Inc., of the 1900 block of Moreland Parkway, were charged with mailing fraudulent cost and pricing data to the U.S. General Services Administration (GSA), said U.S. Attorney Lynne A. Battaglia.
Battaglia said that in February 1991, Goldstein and his company were awarded a series of contracts from the GSA for the sale NTC and installation of blinds, curtains, and window treatments.
The contracts were based on the cost and pricing data Goldstein and his company gave to the GSA, Battaglia said.
The contracts stated that Goldstein and his business were permitted to make an 8 percent profit and make an annual request of a 4 percent increase if the firm demonstrated there was an increase in the cost of manufacturing the blinds and curtains.
The total value of the contracts was well over $11 million, Battaglia said.
But the indictment alleges that Goldstein and his company gave the GSA fraudulent cost and pricing data that inflated the margin of profit, Battaglia said.
"He inflated the cost to himself in order to get a higher price under the GSA contract," Battaglia said. "We're talking about sales in excess of $11 million and this costs the taxpayers. The amount of money indicates the fraud was significant."
The indictment also states that Goldstein attained certifications that falsely affirmed his cost and pricing data.
Goldstein was not available for comment.
Battaglia said an arraignment could be scheduled within the next three months.
The maximum penalty for each count of mail fraud is five years in prison and a $250,000 fine.
Pub Date: 6/12/96