Acting U.S. Attorney William E. Fitzpatrick announced Tuesday two employees of a Cherry Hill, New Jersey-based machine shop pleaded guilty to paying kickbacks for subcontract work from a Philadelphia-based military parts manufacturer.
John Schallenhammer was employed as the president of the machine shop in July 2013, when he made an agreement with 55-year-old Christopher Sanchirico of King of Prussia, Pennsylvania. Sanchirico was the assistant purchasing manager for a Philadelphia-based company that manufactured switchgears and shock-hardened circuit breakers. These components were utilized in U.S. Navy submarines, aircraft carriers and submarines.
Sanchirico agreed to assist John Schallenhammer secure a manufacturing contract between his employer and the Philadelphia-based company, in exchange for five to 10 percent of the gross revenue from the switchgear and circuit breaker components.
Theresa Schallenhammer employed as a secretary for the machine shop maintained records of the payments and made bank withdrawals for the kickbacks on several occasions.
Sanchirico received about $150,000 in cash kickbacks from the Schallenhammers from 2013 to 2016.
Theresa and John Schallenhammer face a maximum 5-year prison sentence and $250,000 find. Their sentencing hearing is scheduled for February 6, 2018.