Sentences in Oregon Department of Corrections Food Service Kickback Scheme

Conspirators in bribery case receive light sentences after providing volunteer services

September 25, 2009

OREGON NEWS -- Three Los Angeles businessmen and coconspirators of fugitive Farhad Monem, a former Oregon Corrections food services administrator, have received a light sentence for their role in ripping-off the Oregon prison system. Michael Levin, 53, and William Lawrence, 51, both of Valencia, California, and Howard Roth, 60, of Sherman Oaks, California, were each sentenced by U. S. District Judge Ann Aiken to three months in jail followed by nine months of home detention. However, these light sentences were delivered after taking into account their valuable cooperation in the Monem investigation, the exemplary community service provided by defendants, and their payment of $1.5 million to the IRS, California and Oregon. Furthermore, the prosecution supported a request that Judge Aiken order each defendant to a twelve-month sentence. Judge Aiken agreed to the recommendation and ordered that the three month jail sentences be staggered in a manner which will allow defendants the opportunity to continue to operate their business and to prepare for the 2010 Summer Night Lights program.

The Summer Night Lights program is a program designed to reduce crime and violence by keeping gang-ridden Los Angeles city parks open until midnight during summer months, providing entertainment, food and recreational opportunities to city residents. After their guilty pleas in April 2007, the defendants formed a nonprofit corporation and participated in the Summer Night Lights program, which is sponsored by the City of Los Angeles. The defendants’ role in Summer Night Lights is to donate, prepare and assist serving food to Los Angeles residents and their families. The program is now two years old and in 2009 served sixteen parks. Moreover, the Defendants nonprofit corporation provided 250,000 free meals for the 2009 Summer Night Lights program.

Therefore, it is apparent that these three Los Angeles businessmen, Levin, Lawrence and Roth are invaluable to the success of the Summer Night Lights program in LA, and have placed themselves in a position to persuade the court to deliver a light sentence. That’s good! These guys can repay the community for their crime though public service instead of burdening the prison system by sitting around watching TV.

Originally, the defendants named in a twenty count indictment, charged with conspiracy, bribery, money laundering and fraud pled guilty to one count of bribery and one count of filing a false income tax return with the Internal Revenue Service (IRS). These three businessmen, operated Levin & Lawrence, Inc. (L & L, Inc.), a wholesale food distributor located in Santa Clarita, California. L & L, Inc. selling food products to institutional clients, which included prisons. From August 2004 through December 2006, the three defendants paid a total of $532,000 in kickbacks to Farhad "Fred" Monem, the former Food Services Manager for the Oregon Department of Corrections. These payments were made to secure more than $4.3 million in food contracts with the Oregon Department of Corrections during that time period. Since their pleas, defendants have collectively paid approximately $750,000 to the Internal Revenue Service, $200,000 to the California Department of Revenue, and $540,000 to the State of Oregon to settle tax and civil claims brought against them. Defendants Lawrence and Roth also agreed to surrender funds they used to purchase property in Oregon with Fred Monem. Additionally, when the kickback scheme was discovered in December 2006, federal search warrants were obtained and served on L & L, Inc.’s business premises. The three defendants quickly admitted to participating in the bribery scheme and began cooperating in the government’s investigation of Fred Monem.

Max Williams, Director of the Oregon Department of Corrections attended the sentencing hearing and stated:

"I am pleased to see these three men held accountable for their actions in a scheme that so blatantly violated the law and so seriously abused the trust of the Department of Corrections and the citizens of the state of Oregon. It is my hope that the sentence handed down today will stand as a warning to the serious consequences of bribing a public official. We are appreciative of the cooperation of the Federal government in this investigation and we remain hopeful that Fred Monem will ultimately be brought to justice and held responsible for his part of this scheme."

The Federal Bureau of Investigation believes Fred Monem is hiding in Iran, a country which has no extradition treaty with the United States. The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the FBI, with the assistance of the Oregon Department of Corrections. The prosecution is being conducted by Assistant U. S. Attorney Christopher Cardani.

Final thoughts, the damages incurred by this kickback scheme effected the State of Oregon and the state did receive a monetary settlement. However, what did the Oregon state taxpayer receive in just compensation? LA citizens received a free dinner with entertainment through these defendants contributions to the Summer Night Lights program. Although this case is a fine example of smart justice, wouldn’t it have been even more just if as part of their sentence these defendants funded a Summer Night Lights program in Eugene, Oregon? I’m sure the Eugene community would have equally enjoyed a free dinner with entertainment too.