ROCHESTER, N.Y. (WROC) — A Rochester man convicted of wire fraud was sentenced for his role in an Army contract manufacturing swap.
Reginald Cannon, 55, is the president of the Rochester based company Burnett Process, Inc. According to prosecutors, the United States Army granted the company a five-year contract to supply M98 Gas Particulate Filters used in everything from shelters and mobile hospitals to US Navy ships.
Under the contract, Cannon was required to certify that the filter paper used in the filters met certain standards, including that it was produced at one of two American companies or that it was tested and approved for military use.
Prosecutors said Cannon sold 3,650 M98 Filters to the Army for a total of $315,944, but those filters used cheaper filter paper from a Chinese manufacturer that had not been tested or approved. He then told the Army the paper was manufactured by one of the two approved American companies.
“This defendant attempted to cut costs and increase his profits by using products that were not in compliance with the contract entered into by Burnett Process Inc. with the United States Military,” stated U.S. Attorney Ross. “Working with our investigative partners, this deception was uncovered before it caused harm to members of our military.”
Cannon was convicted of wire fraud, sentenced to two years’ probation, fined $200,000, and ordered to pay back the $315,944 made off the contract.