Half the $1.8 million fine imposed against Mid-Atlantic Coca-Cola Bottling Co. for conspiracy and bribery will be put in a trust fund to benefit recreational activities at Norfolk Naval Station.
The Maryland-based company was convicted in June of bribing a Navy employee to help the bottler outbid competitors and increase its soft drink sales to the Navy in the mid-1980s.
A federal jury found the company guilty of 11 felonies: one count of conspiracy, five counts of bribery and five counts of giving gratuities.
U.S. District Judge Robert Doumar ruled that active-duty Navy personnel at the Norfolk Naval Station were victimized by the conspiracy. As a result, they paid more for their vending-machine soft drinks.
On Friday, Doumar ordered that $900,000 of the fine be put into a trust fund for Navy recreational activities. Interest from the trust will be used for entertainment and cultural, sports, dining and recreational events, the judge ordered.
Mid-Atlantic must pay the remaining $900,000 in fines within 30 days.
Doumar also put Mid-Atlantic on probation for one year, and he ordered the company to pay $3,561 in restitution to a firm that lost sales commissions because of the conspiracy.