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Shaw, Inc. (B.F. Shaw). Simmel was employed as a purchasing manager
with Pullman, Inc. (Pullman).
The overbilling and kickback arrangement with Short covered
only certain specially fabricated items that Short ordered on behalf
of B.F. Shaw from West Jersey. The kickback arrangement did not apply
with respect to stock fabricated items that West Jersey sold B.F.
Shaw, because the prices West Jersey charged B.F. Shaw with respect to
the stock items generally were fixed under a previously established
price list for such stock items.
Typically, overbilling would occur after Short or Simmel, as
purchasing agent for his employer, contacted Mr. Walker or another
West Jersey employee, requested a price quote on certain items, and
then placed an order for the items. With Short's or Simmel's knowledge
and connivance, the price West Jersey later billed and charged B.F.
Shaw or Pullman for the ordered items would 'be inflated above the
price originally quoted to Short or Simmel. Mr. Walker would record
the amounts West Jersey overbilled B.F. Shaw and Pullman (i.e., the
difference between the inflated price West Jersey charged and the
originally quoted price) in various notebooks he maintained for each
company. Pursuant to the overbilling and kickback arrangement with
Short, part of the overbilled amounts that West Jersey collected from
B.F. Shaw was required to be paid over to Short. Essentially, Short
was to receive a 50-percent share of the overbilled amounts that West
Jersey collected from B.F. Shaw. Similarly, under the overbilling and
kickback arrangement with Simmel, part of the overbilled amounts that
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