Acting U.S. Attorney William E. Fitzpatrick announced Thursday a former Bayway Lumber employee was sentenced to 12 months in prison for lying to a federal grand jury and conspiring to defraud customers.
Forty-four-year-old Adam Martignetti of South River, New Jersey was employed as a salesman at Bayway Lumber. He sold industrial and commercial products to several private and public companies. Martignetti admitted to conspiring with others to defraud customers of Bayway Lumber, by overcharging them for items to make up for free items given to some of the customers’ employees from 2011 through 2013, according to court documents.
Martignetti also charged customers for high-quality plywood, when they only purchased low-quality plywood. He gave personal items, including iPads, a sound system, a camera, a laptop and patio furniture, to employees of Baywood’s customers, including the Plainfield Board of Education, Amtrak and the City of Elizabeth. Martignetti conspired with co-owner and president of Bayway Lumber, Robert Dattilo, to overbill those customers.
Dattilo oversaw the process, monitoring how much the customers were overbilled to make sure Bayway Lumber recovered the full cost of the personal items. Martignetti provided New York-based Consolidated Edison Co. lower quality or “reject” plywood, when the company ordered high-quality plywood.
Dattilo pleaded guilty in July 2016 to conspiracy to commit mail and wire fraud. He was sentenced to 48 months and prison and ordered to pay restitution in the amount of $708,386.