Businessman Pleads Guilty in Fraud Scheme

PITTSBURGH—A Pittsburgh-area businessman has pleaded guilty in federal court to charges of conspiracy, bribery of agent of an organization receiving federal funds, and mail fraud, United States Attorney David J. Hickton announced today.

Arthur J. Bedway, Jr., 63, pleaded guilty to three counts before United States District Judge Cathy Bissoon.

In connection with the guilty plea, the court was advised that Bedway owned Victory Security. In order to obtain a contract with the city of Pittsburgh to install radios and mobile data terminals (MDTs) in city police cars, Bedway created Alpha Outfitters, which he falsely represented to the city as a Women's Business Enterprise (WBE). He conspired with a city employee, Christine Ann Kebr, and others to obtain the MDT contract for Alpha Outfitters. Bedway paid Kebr for her assistance in obtaining the MDT contract.

Judge Bissoon scheduled sentencing for November 20, 2013 at 10:00 a.m. The law provides for a total sentence of 35 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

Pending sentencing, the court continued bond.

Assistant United States Attorneys Robert S. Cessar and Lee J. Karl are prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Bedway.