The General Electric Co. has been fined $31,000 for maintaining a $1.25 million slush fund used to bribe an official in Puerto Rico in return for a $92 million contract to construct a power plant.
U.S. District Court Judge Ann Thompson imposed similar fines on Hoyte Steele, 69, of New Canaan, Conn., a former GE vice president and general sales manager, and Robert Naples of Scotia, N.Y., a former GE sales manager.
Steele also was given a four-month jail term and Naples received a two-month sentence.
Thompson also imposed a $31,000 fine on Schenectady Turbine Inc., a New York subcontracting firm that acted as a conduit for the bribe, and its vice president, Charles Mothon, 53, of Scotia, N.Y., who also was given a one-year jail term.
The defendants were found quilty Feb. 11 of conspiracy, bribery, mail and wire-fraud charges in connection with a 1973 scheme to secure a $92 million contract for construction of a power plant in Aguirre, Puerto Rico.
In a statement after sentencing, GE claimed it was responsible for bringing the scheme into the open and that its role should have been considered in the court findings.