Technology Company Owner Admits Paying Bribes To Secure Contract With Medical Device Company

NEWARK, N.J. – A Stamford, Connecticut, man today admitted paying bribes in order to secure a contract between his metallurgical technology company and a medical device company, U.S. Attorney Paul J. Fishman announced.

Eugene Ostrovsky, 56, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with violating the Federal Travel Act.

According to documents filed in this case and statements made in court:

Ostrovsky was a principal at a metallurgic technology company in New York. Ostrovsky admitted that he and others sought a multimillion-dollar supply contract with a medical device company in New Jersey. From 2012 through 2013, Ostrovsky and others paid approximately $70,000 in illicit bribes to an employee of the medical device company – Daniel Lawrynowicz, 47, of Monroe, New York – in return for Lawrynowicz’s assistance in securing the contract.

The count of violating the Federal Travel Act carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Ostrovsky must also forfeit $1.1 million as part of today’s guilty plea. Sentencing is scheduled for June 29, 2017.

On March 23, 2016, Lawrynowicz was charged by complaint with accepting the bribe payments. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.

Defense counsel: Paula M. Junghans Esq.