Anixter cooperating with U.S. govt in fraud case

Anixter announced that it is cooperating with the U.S. government in the prosecution of a former employee.

Anixter announced that it is cooperating with the U.S. government in the prosecution of its former employee, Greg Walsh. Immediately after learning of allegations relating to Mr. Walsh, the company reports that it took swift action, including actively cooperating with government investigators and making a voluntary, proactive credit to its affected customer.

As reported by the Daily Press of Hampton Roads, Virginia, Gregory Kirk Walsh, 37, worked at Anixter Shipboard Group of Richmond, VA, which in May 2007 signed a contract to supply Newport News Shipbuilding with electrical wire and cable, according to documents filed with the U.S. District Court in Norfolk. Ship parts salesman Walsh has pleaded guilty to a federal charge of wire fraud for arranging a series of bogus transactions that added $83,000 to the cost of cable sold to the shipyard and passed along to the U.S. Navy.

According to the Daily Press reporting, on 19 separate occasions between September 2007 and July 2010, Walsh sold cable destined for Newport News to two family-owned businesses, then bought it back at an increased price and sold it at an even higher price to the shipyard.

According to a press release, the U.S. government has thanked Anixter for its assistance in the investigation, which led to Mr. Walsh’s prosecution. The U.S. government also considers Anixter to be a victim of the misconduct. Mr. Walsh has reportedly agreed to make restitution to Anixter as part of his punishment for the offense.

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