Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT T. MADISON pled guilty today for his participation in a scheme to pay kickbacks to two executives of a pharmaceutical marketing company in exchange for printing contracts. MADISON pled guilty before U.S. District Judge Paul A. Engelmayer.

Manhattan U.S. Attorney Preet Bharara said: “Rather than building a true business relationship, Robert Madison built one based on bribery –with everything from private jet travel to cash to payments at a “Gentlemen’s Club” – and deceit by directing the payments to third parties and controlled companies. Because of this, he will now pay over $1.4 million in restitution.”

According to the Indictment previously filed in Manhattan federal court, statements made during MADISON’s guilty plea, and other Court filings:

MADISON was the owner and operator of Creative Press, a printing and direct mail marketing company located in Phoenix, Arizona. MADISON’s company provided printing and direct mailing services to a New Jersey-based pharmaceutical marketing agency (the “Marketing Agency”). MADISON also owned and operated a company called East Coast Vending. From February 2007 through January 2009, ROBERT MADISON engaged in a scheme to commit honest services fraud by paying undisclosed kickbacks to, or for the benefit of, two executives at the Marketing Agency – Michael J. Mitrow and Matthew J. Mitrow – in order to continue the business relationship between the Marketing Agency and MADISON’s company.

MADISON took various steps to conceal from the Marketing Agency the kickback payments, including by causing certain payments to be made through East Coast Vending rather than Creative Press; causing payments to be made to third parties on behalf of Michael Mitrow and Matthew Mitrow rather than directly to them; and routing kickback payments through companies controlled by one of the executives and others.

Among the kickbacks that MADISON paid to or for the benefit of Michael Mitrow and Matthew Mitrow were the following: (i) over $700,000 in private jet travel by the Mitrows and their friends and relatives; (ii) approximately $426,000 to a company owned by one of the executives; (iii) approximately $39,000 in home renovations; (iv) a $19,000 payment to a New York City “Gentlemen’s Club;” and (v) approximately $30,000 in credit card debts.

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MADISON, 43, of Henderson, Nevada, pled guilty to one count of conspiracy to commit honest services mail and wire fraud, and faces a maximum sentence of 20 years in prison. As part of his plea agreement with the Government, MADISON agreed to pay restitution of $1.416 million.

Michael Mitrow, 46, of Whitehouse Station, New Jersey, is charged with two counts of conspiracy to commit wire fraud, which each carry a maximum sentence of 20 years in prison, three counts of wire fraud, which each carry a maximum sentence of 20 years in prison, one count of tax evasion, which carries a maximum sentence of five years in prison, and one count of obstructing and impeding the IRS, which carries a maximum sentence of three years in prison.

Matthew Mitrow, 40, of Westfield, New Jersey, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

The charges against Michael Mitrow and Matthew Mitrow are merely accusations, and they are presumed innocent unless and until proven guilty.

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