Joseph T. Walker and Nancy Walker - Page 20

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     West Jersey charged and collected were between 10 to 40 percent                  
     of the originally quoted price for the overbilled items.                         
     However, Short testified that their overbilling and kickback                     
     arrangement applied only with respect to specially fabricated items              
     that Short ordered on behalf of B.F. Shaw, and not to stock items.               
     Neither Mr. Walker or Short could provide a precise breakdown with               
     respect to how much of Short's purchases on behalf of B.F. Shaw                  
     consisted of specially fabricated items, as opposed to stock items.              
     Short related only that B.F. Shaw purchased more specially fabricated            
     items than stock items. No specific evidence was offered on whether              
     the overbilling and kickback arrangement with Simmel covered all items           
     or only certain items sold to Pullman. Yet, we think that the                    
     arrangement applied only                                                         
     to certain items, since Pullman, like B.F. Shaw, would have obtained a           
     price list from West Jersey with respect to stock items Pullman                  
     purchased. During 1978 through 1981, Pullman purchased more from West            
     Jersey than B.F. Shaw did.                                                       
            We thus believe Mr. Walker's $407,900 estimate to be grossly              
     excessive, considering that the overbilling and kickback arrangements            
     did not cover all items that Short and Simmel ordered on behalf of               
     their respective employers, B.F. Shaw and Pullman. A substantial                 
     portion of West Jersey's sales to these two contractors involved items           
     not subject to the overbilling and kickback arrangements with Short              
     and Simmel. Further, only the overbilled amounts West Jersey                     
     collected, not the entire gross sales price of the overbilled items,             
     was shared with Short and Simmel.                                                



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