Employees Of A New Jersey Machine Shop Plead Guilty To Kickback Conspiracy Involving Military Parts

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.

PrisonFifty-seven-year-old John Schallenhammer of Atco, New Jersey and 53-year-old Theresa Schallenhammer of Cherry Hill conspired to secure illegal manufacturing contracts on several occasions.

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.

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