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Corruption in New Jersey DOC

A guard and business owner were indicted on multiple corruption charges in January 2009 concerning more than $230,000 in alarm contracts awarded by the New Jersey Department of Corrections (NJDOC).

            Guard Frederick Armstrong and business owner Paul Kerth were accused of soliciting contractors to overbid on alarm contracts. Armstrong worked in the capital planning and construction unit of the NJDOC as a construction management specialist at the time.

            Kerth, who owns Adirondack alarm and Automatic Alarm, allegedly used his companies and other solicited contractors to overbid. His lower bids won the contracts. Kerth’s charges included official misconduct with two counts of fraud, misconduct by a corporate official, theft by deception, and conspiracy.

            Armstrong faced many of the same charges. Initially, he was suspended with pay, but was later suspended without pay. Prior to the indictment, he was reassigned to the maintenance unit during the investigation in June 2006. Simultaneously, Gerald Kennedy, his co-worker and assistant director of the operations division, lost his job. Kennedy allegedly approved contracts of $348,000 to his secret construction businesses. Source: The Star-Ledger

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