(Source: nj.com) TRENTON — It may not be the best idea to sell low-grade or "reject" industrial products to the New York Department of Corrections, but that's what a part-owner of a Linden industrial and commercial supplies company admitted in federal court Thursday.

Robert R. Dattilo, 61, pleaded guilty before U.S. District Judge Peter G. Sheridan that his company, Bayway Lumber, not only sold inferior products to the city corrections department, but also took advantage of hospitals, local governments, the New York Transit Authority, Con Edison and other agencies, according to court records.

The U.S. Attorney's Office for New Jersey said the fraud in all totaled more than $708,000.

From 2007 through last November, Dattilo conspired with others — including employees from the agencies that were being overcharged — to fraudulently bill for products. In some cases, court records show, the agencies were charged for more products than they received. In others, they were given lower-quality products that were covered up.

According to court papers, employees at Amtrak and an unidentified Bergen County business accepted Yankees tickets, computer equipment, a camera and other gifts. In return, they made sure Bayway was able to get reimbursed for more than they supplied in their contracts, covering the cost of the "gifts."...