STATE OF NEW YORK BINGHAMTON CITY COURT COUNTY OF BROOME CITY OF BINGHAMTON THE PEOPLE OF THE STATE OF NEW YORK -against? FELONY COMPLAINT BERT ADAMS DISPOSAL, INCDefendant. STATE OF NEW YORK COUNTY OF BROOME ss.: JOEL CORDONE, an Investigator with the Criminal Division of the New York State Of?ce of the Attorney General deposes and says that the defendant committed the following crime: COUNT ONE COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, a class felony, in violation of New York State General Business Law 340 and 341, in that the defendant, in or about July 2014 through in or about May 2016, in the City of Binghamton and County of Broome, knowingly and intentionally entered into or engaged in or continued to engage in, a contract, agreement, arrangement, or combination in unreasonable restraint of competition and the free exercise of activity in the conduct of business, trade, and commerce, to wit, in or about the referenced time period, in the City of Binghamton and throughout Broome County, the defendant, acting in concert with others, knowingly and intentionally entered into collusive contracts, agreements, arrangements, or combinations thereof, to rig bids for waste-hairli?f, recycling, and related services, depriving 1 'a 8?14: FOIL G000316-O41918 000001 customers of their right to free competition and in turn forcing customers to pay excessive prices for services. This Complaint is based on information and belief, the sources of which are my investigation conducted on behalf of the including but not limited to, the review and analysis of business records, telephone records and other records, interviews of witnesses, and other investigative techniques, among other sources. FACTUAL BASIS This crime was committed under the following circumstances: 1. Bert Adams Disposal, lnc. (?Bert Adams Disposal?) is a family-owned corporation established in 1976, incorporated under the laws of New York State, and is located at 52] Main Street, Chenango Bridge, New York 13745 in Broome County. 2. Bert Adams Disposal provides various waste-management services, including trash collection, transfer and disposal, recycling services, commercial dumpsters, roll-off container rentals, and delivery and pick-up. 3. Bert Adams Disposal serves a variety of residential, commercial and municipal customers in New York State, including Broome, Chenango, Delaware, Cortland, Madison and Otsego counties. 4. Elbert B. Adams, (?Bert Adams?), DOB is, and was during the relevant and referenced time period, the majority owner and Chief Executive Officer of Bert Adams Disposal, and served and continues to serve in a supervisory and managerial capacity over subordinate employees. FOIL G0003 16-041918 000002 7. Witness interviews, corroborated by my review of phone records and business records, revealed that in or around July 2014, Bert Adams and others from Bert Adams Disposal, conspired with individuals from competitor Taylor Garbage Service, Inc. (?Taylor Garbage?) to rig bids, allocate customers and ?x prices for Bert Adams Disposal?s waste hauling and recycling services. For example, I reviewed phone records that revealed the following text messages between Bert Adams and Robert Taylor, President of Taylor Garbage, indicating the approximate start to the conspiracy: From To Date Time Content Robert Bert Adams 07/16/14 2:54:56 Just wondering if you would be Taylor willing to sit down sometime with Pat and and talk about things in the battle field. I'd like to try to work out a plan to work with each other rather than working against each other. Because the customer is the only one that wins when we're at each other?s throat. Give it some thought and let me know. BT Bert Bob Taylor 07/16/14 3:04:10 Yes anytime just tell me where I Adams got to meet you Robert Bert Adams 07/16/14 3:10:45 Good, let me check the schedule Taylor Iol and get back to you. Probably early next week sometime Witness interviews, corroborated by my review of business records and phone records, revealed that Bert Adams and others at Bert Adams Disposal and Taylor Garbage continued this conspiracy through in-person meetings, phone calls, and text messages. FOIL G000316-041918 000003 10. 11. 12. The investigation revealed that as part of the conspiracy, Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage participated in a form of bid rigging known as ?cover bidding? which occurs when a competitor deliberately submits an arti?cially high bid they believe the customer will reject, thus creating the appearance that the winner?s bid is legitimately competitive and ensuring that the agreed?upon competitor will win the bid. The investigation revealed that Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage, regularly submitted in?ated bids and price quotes to ensure that the other company would keep its current customers without raising suspicion by being the only bidder. For example, the investigation revealed that in 2015, the Airport Inn Bar Grill, a restaurant located in Binghamton, New York and a Bert Adams Disposal customer, requested a price quote from Taylor Garbage. Bert Adams Disposal and Taylor Garbage agreed that Taylor Garbage would submit an in?ated quote to ensure that Bert Adams Disposal kept the account. The investigation further revealed that as part of the conspiracy, Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage participated in a form of bid rigging known as ?bid suppression? which occurs when a competitor agrees that it will not submit a bid to ensure that its competitor will win a contract. For example, the investigation revealed that in 2015, Pier 1 Imports in Vestal, New York, a Bert Adams customer, requested a price quote from Taylor Garbage. Taylor Garbage and Bert Adams Disposal agreed that Taylor Garbage would not submit a quote to Pier 1, ensuring that Bert Adams retained the account. FOIL G000316-041918 000004 13. 14. 15. 16. The investigation further revealed that as part of the conspiracy, Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage participated in ?price ?xing,? which occurs when competitors enter into a contract, agreement, arrangement, or combination thereof to ?x the price of a product or service, thereby in?ating the prices paid by consumers. For example, my review of phone records revealed the following text exchange between Bert Adams and Robert Taylor: From To Date Time Content Robert Bert Adams 05/04/15 4:28:48 Did I hear a rumor that your going Taylor to raise your residential rates? Bert Bob Taylor 05/04/15 4:31:01 Yes but I?ll let you know when and Adams how much Robert Bert Adams 05/04/15 4:34:26 Good. I'll get start working on pat Taylor now and in time I'll get her to think it?s her idea and join in on the raise. The investigation further revealed that as part of the conspiracy, Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage participated in ?market allocation,? which includes contracts, agreements, arrangements or combination thereof, between competitors, that they will not compete with respect to speci?ed customers, geographical territories or products. For example, the investigation revealed that in March 2015, Broome Developmental Services issued a bid for its satellite locations across several counties. Bert Adams Disposal and Taylor Garbage allocated the Broome County locations among themselves FOIL G000316-041918 000005 17. 18. 19. 20. 21. and either bid or refrained from bidding accordingly. Outside of Broome County, the companies allocated accounts along a geographic boundary. Speci?cally, Taylor Garbage placed ?no bids? on Chenango County, Delaware County and Otsego County while Bert Adams Disposal placed bids within each of those locations. Meanwhile, Bert Adams Disposal did not bid on any Tioga County locations, while Taylor Garbage placed bids for all Tioga County locations. The records I reviewed, along with testimony from witnesses, revealed that as a result of the above-referenced collusion customers were deprived of their right to free competition and forced to pay excessive prices for waste-hauling services. The records I reviewed, along with testimony from witnesses, revealed that as a result of the above-referenced collusion, Bert Adams Disposal bene?tted ?nancially. As the majority owner and Chief Executive Of?cer of Bert Adams Disposal, Bert Adams had primary supervisory responsibility for and was actively involved in managing the day- to-day operations of Bert Adams Disposal, including managing all aspects of subordinate employees and managing the pricing and bidding activities of Bert Adams Disposal. Witness interviews, corroborated by my review of business records and phone records, revealed that Bert Adams was critical to the initiation of the conspiracy, was aware of and approved the contracts, agreements, arrangements or combination thereof throughout the course of the conspiracy, and was a necessary party to the ultimate agreement to conclude the conspiracy with Taylor Garbage. As such, Bert Adams Disposal, acting in concert with others, knowingly and intentionally, entered into collusive contracts, agreements, arrangements, or combinations thereof, to rig FOIL G000316-041918 000006 bids for waste-hauling, recycling, and related services, depriving customers of their right to free competition and in turn forcing customers to pay excessive prices for services. WHEREF ORE I REQUEST THAT AN ARREST WARRANT BE ISSUED FOR DEFENDANT ELBERT E. ADAMS. Notice: False statements made herein are punishable as a Class A misdemeanor pursuant to New York State Penal Law 210. 45 Dated: April 2018 m1 5 CWZOM #237?? JOEL CORDONE New York State Attorney General?s Of?ce FOIL G000316-041918 000007 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against- i PLEA AGREEMENT BERT ADAMS DISPOSAL, INC. Defendant. STATE OF NEW YORK COUNTY OF BROOME ss.: 1. This is a plea agreement (?Agreement?) between the Of?ce of the Attorney General of the State of New York and the defendant, Bert Adams, Disposal, lnc. (?Bert Adams Disposal?). 2. BERT ADAMS DISPOSAL, the undersigned defendant, has been charged in Broome County Court, County of Broome, State of New York, by Superior Court Information Number 18-158 (AG), with one count of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, a class felony, in violation of General Business Law 340 and 341, also known as a violation of New York State?s Donnelly Act. 3. Bert Adams Disposal is represented by MICHAEL A. BERLIN, Esq., who is present in the court today. Bert Adams Disposal is fully satis?ed with his representation. Bert Adams Disposal understands that it must be represented by an attorney throughout the prosecution and trial of these charges. 4. MICHAEL A. BERLIN, ESQ. represents that he is an attorney licensed to practice law in the courts of New York State and is counsel duly authorized to represent and enter a guilty plea for the defendant Bert Adams, Disposal, pursuant to this Agreement, as described below. FOIL G000316-041918 000008 5. Bert Adams Disposal has been advised by its attorney of, and understands the nature of the charges against it, the elements of the offenses with which it is charged, and the range of permissible sentences. The maximum permissible sentence for a corporation for the crime of Combination in Restraint of Trade and Competition in violation of General Business Law 340 and 341 is a sentence of a three-year conditional discharge and a ?ne of one million dollars or double the amount of the defendant?s gain from the crime, whichever is greater. 6. By pleading guilty, Bert Adams Disposal is giving up the following rights, which it has discussed with its attorney: a. Bert Adams Disposal understands that by pleading guilty it is giving up its right to a trial by a jury drawn from a broad cross-section of the community. Bert Adams Disposal understands that by pleading guilty it is giving up its right to have the People produce witnesses to testify against it. Bert Adams Disposal understands that by pleading guilty it is giving up its right to have its attorney cross-examine any witnesses who may testify against it. Bert Adams Disposal understands that by pleading guilty it is giving up its right to have its attorney produce witnesses to testify for it. Bert Adams Disposal understands that by pleading guilty it is giving up its right to remain silent and its right to either testify or not testify at trial. Bert Adams Disposal understands that by pleading guilty it is giving up its right to have the People prove its guilt beyond a reasonable doubt by a unanimous verdict of all jurors at trial. Bert Adams Disposal understands that by pleading guilty its plea will operate just like a conviction of guilty after a jury trial. 000009 h. Bert Adams Disposal understands that by pleading guilty, if it has a defense to this charge, it is giving up its right to present that defense at trial. 7. Bert Adams Disposal acknowledges that it has consulted with its attorney about the consequences this guilty plea may have on the corporation, including revocation or suspension of any licenses, among other possible collateral consequences, and wishes to plead guilty to the charged offense regardless of any consequences of the plea. Accordingly, Bert Adams Disposal waives any and all challenges to its guilty plea and sentence. Bert Adams Disposal further agrees not to seek to withdraw its guilty plea or to ?le a direct appeal or any kind of collateral attack challenging its guilty plea, conviction, or sentence, based on any collateral consequences of any kind of its guilty plea. 8. Further, in consideration for and as part of the plea agreement in this matter, Bert Adams Disposal hereby waives and relinquish its right to appeal from any judgment of conviction, and from any proceedings herein that may result from this prosecution. Bert Adams Disposal has been advised of its right to appeal, its right to be represented by an attorney on appeal, and its right to have an attorney assigned for it on appeal if it cannot afford one. It is Bert Adams Disposal?s understanding and intention that the plea agreement in this matter will be a complete and ?nal disposition of the matter. Bert Adams Disposal makes this waiver knowingly and voluntarily after having been fully advised of its rights by the Court and having had a full and fair opportunity to discuss these matters with its attorney. Bert Adams Disposal agrees to execute the written waiver of appeal provided to it by the Of?ce of the New York State Attorney General. 9. Bert Adams Disposal hereby agrees to enter a plea of guilty in accordance with the terms of the plea offer which has been made to it, having consulted with its attorney and having been advised of all of the rights listed above. 10. Bert Adams Disposal will plead guilty to one count of Combination in Restraint of Trade and Competition in violation of General Business Law 340 and 341, also known as a violation of New York State?s Donnelly Act. 11. At the time of its plea, counsel for Bert Adams Disposal, Michael A. Berlin, Esq., will allocute on behalf of Bert Adams Disposal and, under oath, admit to the following: FOIL G000316-04l918 000010 12. Bert Adams Disposal, Inc. admits that, in or around July 2014 through in or around May 2016, in the County of Broome, State of New York, it knowingly and intentionally entered into collusive contracts, agreements, arrangements, or combinations thereof (hereinafter ?arrangements?), with Taylor Garbage Service, Inc. (?Taylor Garbage?), to rig bids for waste-hauling, recycling, and related services. Bert Adams Disposal, Inc. further admits that in entering into these arrangements, it deprived customers of their right to free competition and in turn forced customers to pay excessive prices for waste-hauling and related services. Bert Adams Disposal further admits that it bene?tted ?nancially from this collusive conduct. Bert Adams Disposal further admits that the conduct it has admitted today is a violation of General Business Law 340 and 341 also known as New York State?s Donnelly Act. In accordance with this plea, Bert Adams Disposal, will be sentenced to a three- year conditional discharge. 13. Bert Adams Disposal further understands that as part of its sentence, it will be ordered to pay an eight hundred ?fty thousand dollar ?ne to the State of New York. 14. Bert Adams Disposal agrees to pay this ?ne pursuant to the following schedule, with all payments made within the three-year conditional discharge time period: a. Two hundred ?fty thousand dollars on or before the date of its plea (the ?First Payment?); Two hundred thousand dollars within one (1) year of the First Payment (the ?Second Payment?); Two hundred thousand dollars within one (1) year of the Second Payment (the ?Third Payment?); and Two hundred thousand dollars within one (1) year of the Third Payment. FOIL G000316-041918 000011 15. Bert Adams Disposal understands that in the event it fails to timely and properly make payment as required by paragraphs 13 and 14, it will have violated its Conditional Discharge and may be re-sentenced, possibly facing additional penalties. 16. To secure the payment described by paragraphs 13 and 14, Bert Adams Disposal will execute and deliver, on or before the date of its plea in this matter, the accompanying Af?davit for Judgment by Confession (attached hereto as Exhibit A), confessing judgment for the Monetary Relief Amount of eight hundred ?fty thousand dollars plus collection fees of twenty two percent of any unpaid Monetary Relief Amount at the time of any subsequent default, plus statutory costs of $15.00. The OAG will reduce the Monetary Relief Amount by the principal amount of payments made by Bert Adams Disposal to the OAG to calculate the Unpaid Monetary Relief Amount at the time of any subsequent default. 17. In the event that Bert Adams Disposal fails to timely and properly make payment as required by paragraphs 13 and 14, the OAG shall provide Bert Adams Disposal with written notice, by ?rst class mail, of such failure. If Bert Adams Disposal does not cure such failure within 30 days of the written notice, the OAG may ?le and enter the applicable Af?davit for Judgment by Confession as a judgment against Bert Adams Disposal, at any time, and without further notice, for the balance owed at the time of default, less any payments made prior to default, plus the collection fees and statutory costs described above. 18. Bert Adams Disposal represents and warrants that the signatory on the attached Af?davit for Judgment by Confession below has been duly authorized to and has the authority to sign an Af?davit for Judgment by Confession on behalf of Bert Adams Disposal, its Of?cers and Directors, as per the corporate resolution (attached hereto as Exhibit B). 19. Bert Adams Disposal understands and agrees that the payments described in FOIL G000316-041918 000012 paragraphs 13 and 14 are not dischargeable in bankruptcy. 20. Bert Adams Disposal understands further that this plea agreement in no way releases it from any civil liability to third parties that it may have. 21. I understand that the Of?ce of the Attorney General will not pursue a civil action pursuant to General Business Law 340 and 341 against Bert Adams Disposal for conduct, during the referenced time period of July 2014 through May 2016, described in this plea agreement or in the corresponding felony complaint ?led on April 4, 2018. 22. Bert Adams Disposal hereby agrees to enter a plea of guilty in accordance with the terms of the plea offer which has been made to it, having consulted with its attorney and having been advised of all of the rights listed above. 23. Michael A. Berlin, Esq. hereby agrees to enter a plea of guilty on behalf on Bert Adams Disposal in accordance with the plea offer which has been made to Bert Adams Disposal. 24. Michael A. Berlin, Esq. understands that he, or a duly authorized representative of the company, must physically appear as counsel for Bert Adams Disposal at all of its court dates as speci?ed by this Court. 25. Bert Adams Disposal understands these rights, and the terms and conditions of this Plea Agreement, which it and Michael A. Berlin, Esq. have read completely. Michael A. Berlin, Esq.?s plea of guilty on behalf of Bert Adams Disposal is given freely, voluntarily, knowingly, and without coercion of any kind. No threats or promises have been made to Bert Adams Disposal or Michael A. Berlin, Esq., to induce it to plead guilty. 26. Michael A. Berlin, Esq. is not under the in?uence of alcohol, drugs, or medication, nor is there any other mental or physical impairment, which prevents him from understanding these proceedings here or from entering this plea knowingly, intelligently and voluntarily. Michael A. Berlin?s mind is clear and his judgment is sound. 27. Bert Adams Disposal agrees to waive and hereby waives all defenses based on the statute of limitations, pre-indictment delay, speedy arraignment, or speedy trial, under Article 30 of the New York State Criminal Procedure Law, the New York State Constitution, the United States Constitution, and case law, in the event that: (1) the convictions are later vacated for any reason, (2) it violates this Agreement, or (3) the plea is not accepted by the Court or the Court permits the corporation to withdraw its previously entered plea of guilty. FOIL G000316-041918 000013 28. This agreement is limited to the Of?ce of the New York State Attorney General and cannot bind other government agencies. Dated: Binghamton, New York April I 2018 The above is hereby approved by, ?35442..? Bert Adams Disp?osal, Inc. By: Elbert B. Adams, Owner Approved and Reviewed by: Michael A. Berlin, Esq. Attorney for Defendant Agreed by: :4 141?? Mary A. Gorman Assistant Attorney General Public Integrity Bureau Hon. Joseph F. Cawley Broome County Court Judge FOIL G000316-O41918 000014 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against? SUPERIOR COURT 5 INFORMATION No. 18?158 (AG) BERT ADAMS DISPOSAL, INC., Defendant. STATE OF NEW YORK COUNTY OF BROOME ss.: SUPERIOR COURT INFORMATION, ORDER AND WAIVER COMBINATION IN RESTRAINT OF GENERAL BUSINESS LAW TRADE AND COMPETITION 340 and 341 ERIC T. SCHNEIDERMAN Attorney General State of New York 120 Broadway, New York, NY 10271-0332 FOIL G000316-041918 000015 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against- SUPERIOR COURT 5 INFORMATION No. 18-158 (AG) BERT ADAMS DISPOSAL, INC., Defendant. WE 1, ERIC T. SCHNEIDERMAN, ATTORNEY GENERAL OF THE STATE OF NEW YORK, by this Superior Court Information, accuse the defendant of the crime of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, in violation of General Business Law 340 and 341, committed as follows: In or about July 2014 through in or about May 2016, in the County of Broome, the defendant knowingly and intentionally entered into or engaged in or continued to engage in, a contract, agreement, arrangement, or combination in unreasonable restraint of competition and the free exercise of activity in the conduct Of business, trade, and commerce, to wit, in or about July 2014 through in or about May 2016, in Broome County, the defendant, acting in concert with others, knowingly and intentionally entered into collusive contracts, agreements, arrangements, or combinations thereof, to rig bids for waste-hauling, recycling, and related FOIL G000316-04l918 000016 services, depriving customers of their right to free competition and in turn forcing customers to pay excessive prices for services. Dated: April i, 2018 ERIC T. SCHNEIDERMAN Attorney General of the State of New York By: "l Mary Al. Clorman, Assistant Attorney General Public Integrity Bureau FOIL 000017 STATE OF NEW YORK BROOME COUNTY COURT . COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK ?against? SUPERIOR COURT 5 INFORMATION No. 18-158 (AG) BERT ADAMS DISPOSAL, INC., Defendant. WAIVER OF INDICTMENT AND ORDER PURSUANT TO CPL ARTICLE 195.00 Defendant hereby waives indictment and consents to be prosecuted by 3 Superior Court Information charging the offenses of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, in violation of General Business Law 340 and 341, a class felony. A copy of that Superior Court Information is attached hereto and is a part of this waiver. Defendant is aware of the following: Under the Constitution of the State of New York, the defendant has the right to be prosecuted by Indictment ?led by Grand Jury; Defendant waives such right and consents to be prosecuted by Superior Court Information to be ?led by Attorney General Eric T. Schneiderman; The Superior Court Information to be ?led by the Attorney General will charge the offense named in this written waiver; and The Superior Court Information to be ?led by the Attorney General will have the same force and effect as an Indictment ?led by a Grand Jury. Signed in open court, and in the presence of my attorney, MICHAEL A. BERLIN, ESQ, AttOrney for BERT ADAMS DISPOSAL, INC. FOIL G000316-041918 000018 I have explained this waiver to Defendant, and I have signed it in open court on behalf of the Defendant. Michael A. Berlin, Attorney for Defendant I, the Attorney General of the State of New York, hereby consent to this waiver. ERIC T. SCHNEIDERMAN Attorney General State of New York By: i in,? i . Mary A: Gorman, Assistant Attorney General Public Integrity Bureau This Court being satis?ed that this waiver complies with the provisions of CPL 195.10 and 195.20, it is ORDERED that this waiver is approved. Dated: Binghamton, NY April 2018 HON. 34; {Era/g BROOME UNTY COURTJ FOIL G000316-041918 000019 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against- SUPERIOR COURT 5 INFORMATION No. 18-158 (AG) BERT ADAMS DISPOSAL, INC., Defendant. WAIVER OF RIGHT TO APPEAL The undersigned Defendant, in consideration of and as part of the plea agreement entered into, hereby waives any and all rights to appeal from the plea, judgment of conviction and sentence in the above-captioned matter. Defendant executes this waiver after being advised by the Court of the nature of the rights being waived, including the right to take an appeal pursuant to CPL 450.10, the right to prosecute the appeal as a poor person and to have an attorney assigned in the event that the undersigned is indigent, and the right to submit a brief and/or argue before an appellate court on any issues relating to the plea, conviction and sentence. Defendant represents that this waiver is being voluntarily, knowingly and freely executed by him. .3 .77 .7 cigar/z (.9 A?/za?f ELBERT E. ADAMS, Owner, for BERT ADAMS DISPOSAL, INC. The undersigned attorney represents that prior to the signing of the foregoing waiver, the above-named defendant was fully advised of the rights of a convicted person to take an appeal under the laws of New York State. The undersigned further represents that, in his professional opinion, the instant waiver by the defendant of the right to appeal was voluntarily, knowingly and freely made. The undersigned recommends to the Court that this waiver be approved. Mug/?894- Michael A. Berlin, Attorney for Defe\ndant FOIL G000316-041918 000020 The defendant executed the foregoing waiver in the presence of this Court, and with the approval of this Court and the advice and consent of the Defendant?s attorney and after the Court reviewed this waiver with Defendant. Dated: Binghamton, NY April 2 2018 HON. W44 BROOME COUNTY COURT JUDGE FOIL G000316-041918 000021 STATE OF NEW YORK BINGHAMTON CITY COURT COUNTY OF BROOME CITY OF BINGHAMTON -- THE PEOPLE OF THE STATE OF NEW YORK -against- MISDEMEANOR COMPLAINT DocketN . BERT J. ADAMS (DOB 12/30/1984), ?0 0 2 5 8 Mary A. German Defendant. Assistant Attorney General (315) 448-4824 Investigator Joel Cordone, a police of?cer with the New York State Of?ce of the Attorney General (OAG), and the Complainant herein, accuses the defendant, Bert J. Adams, with having committed the crime of Attempted Combination in Restraint of Trade and Competition The defendant, Bert J. Adams, committed the crime of ATTEMPTED COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, a class A misdemeanor, in violation of New York State Penal Law 110 and New York State General Business Law 340 and 341, when, in or about July 2014 through in or about May 2016, in the City of Binghamton, County of Broome, State of New York, he attempted to enter into or engage in or continue to engage in, a contract, agreement, arrangement, or combination in unreasonable restraint of competition and the free exercise of activity in the conduct of business, trade, and commerce, to wit, the defendant, an employee of Bert Adams, Disposal, Inc., a corporation in the business of waste-hauling and recycling, while acting in concert with others, knowingly and intentionally attempted to enter into a contract, agreement, arrangement, or combinatiOn thereof, with an employee from Taylor Garbage Service, Inc., a competitor in the waste- hauling and recycling business, to restrain trade and competition in the waste-hauling industry, in which the defendant and the Taylor Garbage Service, Inc. employee agreed to rig bids, allocate customers and ?x prices in the City of Binghamton and elsewhere. This Complaint is based on information and belie? the sources of which are my investigation conducted on behalf of the 0A G, including but not limited to, the review and analysis of business records, telephone records and other records, interviews of witnesses, and other investigative techniques, among other sources. Ll =0l till 8* Al"? t" (13733" FOIL G000316-O41918 000022 FACTUAL ALLEGATIONS . Bert J. Adams (hereafter the ?defendant?) is currently an employee of Bert Adams Disposal, inc. (?Bert Adams Disposal?), a family-owned corporation established in 1976, incorporated under the laws of New York State, and located at 521 Main Street, Chenango Bridge, New York 13745 in Broome County. . Bert Adams Disposal provides various waste-management services, including trash collection, transfer and disposal, recycling services, commercial dumpsters, rolLoff container rentals, and delivery and pick-up. Bert Adams Disposal serves a variety of residential, commercial and municipal customers in New York State, including Broome, Chenango, Delaware, Cortland, Madison and Otsego counties. . From 2014 through 2016, the defendant was employed by Bert Adams Disposal. . Beginning in or around July 2014, the defendant and others conspired with individuals from competitor Taylor Garbage Service, Inc. (?Taylor Garbage?) to rig bids, allocate customers and ?x prices for Bert Adams DiSposal?s waste management services. . The defendant and others at Bert Adams Disposal and Taylor Garbage initiated and continued this conspiracy through in-person meetings, phone calls, text messages and email exchanges. . For example, in or about July 2014, the defendant and an employee of Taylor Garbage, an employee at Taylor Garbage, had an in-person meeting where the two entered into an arrangement in which they would not pursue the business of each other?s current customers through active solicitation or through price competition, including customers located in the City of Binghamton and elsewhere. . The attempted arrangement be?ween the Taylor Garbage employee, the defendant and others, also included an agreement to rig bids in the City of Binghamton and elsewhere in Broome County, by: a. agreeing in advance which company would win a particular bid and then either agreeing not to submit a bid to ensure that the agreed-upon company would win the contract, or by submitting deliberately in?ated bids and price quotes to prOSpective customers to ensure that the incumbent would keep its customers. These ?cover bids? were submitted because an outright refusal to submit a bid to a prospective customer could have caused that customer to suspect collusion between Bert Adams Disposal and Taylor Garbage; and b. agreeing to ?x or increase the prices of products and services; and FOIL G000316-041918 000023 c. agreeing in certain cases not to compete with one another with respect to speci?ed customers and geographical territories. Notice: False statements made herein are punishable as a Class A misdemeanor pursuant to New York State Penal Law 210.45 Dated: April $2018 5 CmoLo-w. 3'23}? JOEL CORDONE New York State Attorney General?s Office FOIL G000316-041918 000024 FOIL G000316-041918 000025 STATE OF NEW YORK BINGHAMTON CITY COURT COUNTY OF BROOME CITY OF BINGHAMTON THE PEOPLE OF THE STATE OF NEW YORK -against- PLEA AGREEMENT BERT J. ADAMS (DOB Defendant. I. l, BERT J. ADAMS, the undersigned defendant, have been charged in Binghamton City Court, City of Binghamton, County of Broome, State of New York, by Misdemeanor Complaint, with one count of ATTEMPTED COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, a class misdemeanor, in violation of Penal Law 110 and General Business Law 340 and 341, also known as an attempted violation of New York State?s Donnelly Act. 2. My attorney is David R. Ross, Esq., who is present in the court with me today. I am satis?ed with the representation provided to me by my attorney. I understand that I have a right to have an attorney throughout the prosecution and trial of these charges and if I cannot afford an attorney, one would be appointed for me. 3. I have been advised of, and understand, the nature of the charges against me, the elements of the offenses with which I am charged, and the range of permissible sentences. The maximum permissible sentence for the crime of Attempted Combination in Restraint of Trade and Competition in violation of Penal Law 110 and General Business Law 340 and 341 is a local jail sentence of one year and a ?ne of one hundred thousand dollars 4. By pleading guilty I am giving up the following rights, which I have discussed with my attorney: a. I understand that by pleading guilty I am giving up my right to a trial by a jury drawn from a broad cross-section of the community. FOIL G0003 16-041918 000026 5. consequences of my guilty plea, and I have been advised that if I am not a United States citizen, my guilty plea may subject me to immigration proceedings and removal or deportation from the United States. I understand that the immigration consequences of my plea will be imposed in a separate proceeding before the immigration authorities. I wish to plead guilty to the charged offense regardless of any immigration consequences of my guilty plea, even if my guilty plea will cause my removal from the United States. I understand that I am bound by my guilty plea regardless of any immigration consequences of the plea. Accordingly, I waive any and all challenges to my guilty plea and sentence based on any immigration consequences, and agree not I understand that by pleading guilty I am giving up my right to have the People produce witnesses to testify against me. I understand that by pleading guilty I am giving up my right to have my attorney cross-examine any witnesses who may testify against me. I understand that by pleading guilty I am giving up my right to have my attorney produce witnesses to testify for me. I understand that by pleading guilty I am giving up my right to remain silent and my right to either testify or not testify at trial. I understand that by pleading guilty I am giving up my right to have the People prove my guilt beyond a reasonable doubt by a unanimous verdict of all jurors at trial. I understand that by pleading guilty my plea will operate just like a conviction of guilty after a jury trial. I understand that by pleading guilty, if I have a defense to this charge, I am giving up my right to present that defense at trial. I understand that by pleading guilty I am giving up my right to claim that the police did anything illegal in regard to this charge, and my right to a hearing to determine if that police conduct was, in fact, illegal. I acknowledge that I have consulted with my attorney about the immigration 2 FOIL G000316-O41918 to seek to withdraw my guilty plea, or to ?le a direct appeal or any kind of collateral attack challenging my guilty plea, conviction, or sentence, based on any immigration consequences of my guilty plea. 6. Further, in consideration for and as part of the plea agreement in this matter, I hereby waive and relinquish my right to appeal from any judgment of conviction, and from any proceedings herein that may result from this prosecution. I have been advised of my right to appeal, my right to be represented by an attorney on appeal, and my right to have an attorney assigned for me on appeal ifI cannot afford one. It is my understanding and intention that the plea agreement in this matter will be a complete and ?nal disposition of the matter. I make this waiver knowingly and voluntarily after having been fully advised of my rights by the Court and having had a full and fair opportunity to discuss these matters with my attorney. I agree to execute the written waiver of appeal provided to me by Of?ce of the New York State Attorney General. 7. I hereby agree to enter a plea of guilty in accordance with the terms of the plea offer which has been made to me, having consulted with my attorney and having been advised of all of the rights listed above. 8. I will plead guilty to one count of Attempted Combination in Restraint of Trade and Competition in violation of Penal Law 110 and General Business Law 340 and 341, also known as an attempted violation of New York State?s Donnelly Act. 9. At the time of my plea, I will, under oath, admit to the following: a. I am currently employed by Bert Adams, Disposal, Inc. (?Bert Adams Disposal?). b. Between July 2014 and May 2016 I was employed by Bert Adams Disposal. c. In or around July 2014 through in or around May 2016, I, along with others at Bert Adams Disposal, attempted to enter into collusive contracts, agreements, arrangements, or combinations thereof (hereafter, ?arrangements?), with individuals from Taylor Garbage Service, Inc. (?Taylor Garbage?), to rig bids for waste-hauling, recycling, and related services, in an attempt to restrain trade and competition in the waste-hauling industry. d. In so doing, I attempted to deprive customers of their right to free competition and required customers to pay excessive prices for waste-hauling and related services. 3 FOIL G000316-041918 000028 6. Speci?cally, in or about July 2014, I met with an employee ofTaylor Garbage, and attempted to enter into an arrangement in which we would not pursue the business of each other?s current customers through active solicitation or through price competition, including customers located in the City of Binghamton and elsewhere. f. This attempted arrangement between myself, others at Bert Adams Disposal, and Taylor Garbage included an agreement to rig bids in the City of Binghamton and elsewhere in Broome County, by: i. agreeing in advance which company would win a particular bid and then either agreeing not to submit a bid to ensure that the agreed-upon company would win the contract, or by submitting deliberately inflated bids and price quotes to prospective customers to ensure that the incumbent would keep its customers; and ii. agreeing to ?x or increase the prices of products and services; and agreeing in certain cases not to compete with one another with respect to speci?ed customers and geographical territories. 10. In accordance with this plea, I understand that as part of my sentence I will be ordered to pay a thirty-seven thousand ?ve hundred dollar ?ne to the State ofNew York. 1 . I further understand that in accordance with this plea, ifl pay the above? referenced ?ne in total on or before the date of my sentencing, I will be sentenced to a one-year conditional discharge. 12. I further understand that in accordance with this plea, ifl do not pay the above? referenced ?ne in total on or before the date of my sentencing, 1 will be sentenced to three years of probation. 13. I understand further that this plea agreement in no way releases me from any civil liability that I may have? ?ll?W?l? Hail Cmy NAK MT purl/3?01. A 111;th j?v?JW?/l' iv :ln?v. (.er ~10 3 l4. I hereby agree to enter a plea of guilty in accordance with the terms of the plea {aft-w; offer which has been made to me, having consulted with my attorney and having been advised of ERSMM ?Aha?- 1:4. ?$1.ch it? ll? Hat all ofthe rights listed above. .N?lgbm FOIL G000316-041918 000029 15. I understand these rights, and the terms and conditions of this Plea Agreement, which I have read completely. My plea of guilty is given freely, voluntarily, knowingly, and without coercion of any kind. No threats or promises have been made to me to induce me to plead guilty. 16. I am not under the in?uence of alcohol, drugs, or medication, nor is there any other mental or physical impairment, which prevents me from understanding these proceedings here or from entering this plea knowingly, intelligently and voluntarily. My mind is clear and my judgment is sound. 17. This agreement is limited to the Of?ce of the New York State Attorney General and cannot bind other government agencies. Dated: Binghamton, New York April 2018 Bert J. Adams Defendant Agreed by: Mary A. Gorm - Assistant Attorney General Public Integrity Bureau Witnesse by, (/ij David R. Ross, Esq Attorney for Defendant The above is hereby approved by, Hon. . Co CH 1 a Binghamton City Court Judge FOIL G000316-041918 000030 STATE OF NEW YORK BINGHAMTON CITY COURT COUNTY OF BROOME CITY OF THE PEOPLE OF THE STATE OF NEW YORK -against- MISDEMEANOR COMPLAINT Docket NoCHRISTOPHER J. KLINE (DOB -, Mary A. Gorman Defendant. Assistant Attorney General - (315) 448-4824 Investigator Joel Cordone, a police officer with the New York State Office of the Attorney General (OAG), and the Complainant herein, accuses the defendant, Christopher J. Kline, of having committed the crime of Attempted Combination in Restraint of Trade and Competition The defendant, Christopher J. Kline, committed the crime of ATTEMPTED COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, a class A misdemeanor, in violation of New York State Penal Law 110 and New York State General Business Law 340 and 341, when, in or about March 2015, in the City of Binghamton, County of Broome, State of New York, he attempted to enter into or engage in or continue to engage in, a contract, agreement, arrangement, or combination in unreasonable restraint of competition and the free exercise of activity in the conduct of business, trade, and commerce, to wit, the defendant, an employee of Bert Adams Disposal, lnc., a corporation in the business of waste-hauling and recycling, while acting in concert with others, knowingly and intentionally attempted to enter into a collusive contract, agreement, arrangement, or combination thereof, with an individual from Taylor Garbage Service, lnc., a competitor in the waste-hauling and recycling business, to restrain competition in the waste-hauling industry, by submitting a deliberately in?ated price quote to a customer located at 20 Front Street in the City of Binghamton, in an effort to ensure that Taylor Garbage Service, Inc. would retain that customer. I This Complaint is based on information and belief the sources of which are my investigation conducted on behalf of the 0A G, including but not limited to, the review and analysis of business records, telephone records and other recor? ?qtgr?ews of witnesses, and other investigative techniques, among other sourcegz l. 93003 ?t?lm??d FOIL G0003 16-041918 00003 1 FACTUAL ALLEGATIONS . Christopher J. Kline (hereafter the ?defendant?) is currently an employee of Bert Adams Disposal, Inc. (?Bert Adams Disposal?), a family-owned corporation established in 1976, incorporated under the laws of New York State, and located at 521 Main Street, Chenango Bridge, New York 13745 in Broome County. . Bert Adams Disposal provides various waste-management services, including trash collection, transfer and diSposa], recycling services, commercial dumpsters, roll-off container rentals, and delivery and pick-up. . Bert Adams Disposal serves a variety of residential, commercial and municipal customers in New York State, including Broome, Chenango, Delaware, Cortland, Madison and Otsego counties. . From 2014 through 2016, the defendant was employed by Bert Adams DiSposal. . Beginning in or around July 2014, the defendant and others conspired with individuals from competitor Taylor Garbage Service, Inc. (?Taylor Garbage?) to rig bids, allocate customers and ?x prices for Bert Adams Disposal?s waste hauling and recycling services. . The defendant and others at Bert Adams Disposal and Taylor Garbage continued this conspiracy through in-person meetings, phone calls, and text messages. .. In or about March 2015, in the City of Binghamton, the defendant attempted to enter into a collusive contract, agreement, arrangement, or combination thereof with an employee from Taylor Garbage, to restrain competition in the waste?management industry by submitting a deliberately inflated price quote to a Taylor Garbage customer located at 20 Front Street in the City of Binghamton, in an e?brt to ensure that Taylor Garbage would retain that customer and that the customer would continue to pay high prices for waste-hauling services. FOIL G000316-041918 000032 8. The following text message exchange between the defendant and the Taylor Garbage employee in or about March 2015 illustrates the defendant?s attempt to enter into a collusive contract, agreement, arrangement, or combination thereof with Taylor Garbage, to restrain trade in the waste-hauling industry, speci?cally with respect to this customer located at .20 Front Street in the City .of Binghamton: Sender Recipient Date 1 Haur . Text Content Chris Kline Jared Taylor 03/26/15 9:30:37 20 ?oat at calling me for numbers Jared Taylor Chris Kline 03/26/15 9:31:05 20 front st hing? Chris Kline Jared Taylor 03/26/15 9:31:17 Yes Jared Taylor Chris Kline 03/26/15 9:36:l8 $130.00 l/week on a 4yd . Terrible at paying too Chris Kline Jared Taylor 03/26/15 9:39:48 called 150 A . - . plu58&8 Chris Kline Jared Taylor 03/26/15 9:39:57 Stays green Notice: False statements made herein are punishable as a Class A misdemeanor pursuant to New York State Penal Law 210. 45 Dated: April if, 2018 m?snomoa JOEL CORDONE New York State Attorney General?s Of?ce FOIL G000316-O41918 000033 11 FOIL G000316-041918 000034 STATE OF NEW YORK BINGHAMTON CITY COURT COUNTY OF BROOME CITY OF THE PEOPLE OF THE STATE OF NEW YORK -against- PLEA AGREEMENT CHRISTOPHER J. KLINE (DOB Defendant. l. I, CHRISTOPHER J. KLINE, the undersigned defendant, have been charged in Binghamton City Court, City of Binghamton, County of Broome, State of New York, by Misdemeanor Complaint, with one count Of ATTEMPTED COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, a class misdemeanor, in violation Of Penal Law 110 and General Business Law 340 and 341 also known as an attempted violation of New York State?s Donnelly Act. 2. I am represented by Serpe Ryan LLP and Silvia L. Serpe, Esq., is present in the court with me today. I am satis?ed with the representation provided to me by my attorney. I understand that I have a right to have an attorney throughout the prosecution and trial of these charges and if I cannot afford an attorney, one would be appointed for me. 3. have been advised of, and understand, the nature of the charges against me, the elements Of the Offense with which I am charged, and the range of permissible sentences. The maximum permissible sentence for the crime of Attempted Combination in Restraint of Trade and Competition in violation of Penal Law 110 and General Business Law 340 and 341 is a local jail sentence of one year and a ?ne of one hundred thousand dollars 4. By pleading guilty I am giving up the following rights, which I have discussed with my attorney: a. I understand that by pleading guilty I am giving up my right to a trial by a jury drawn from a broad cross-section of the community. FOIL G0003 16-041918 00003 5 b. I understand that by pleading guilty I am giving up my right to have the People produce witnesses to testify against me. c. I understand that by pleading guilty I am giving up my right to have my attorney cross-examine any witnesses who may testify against me. I understand that by pleading guilty I am giving up my right to have my attorney produce witnesses to testify for me. e. I understand that by pleading guilty I am giving up my right to remain silent and my right to either testify or not testify at trial. f. I understand that by pleading guilty I am giving up my right to have the People prove my guilt beyond a reasonable doubt by a unanimous verdict of all jurors at trial. g. I understand that by pleading guilty my plea will operate just like a conviction of guilty after a jury trial. h. I understand that by pleading guilty, if I have a defense to this charge, I am giving up my right to present that defense at trial. i. I understand that by pleading guilty I am giving up my right to claim that the police did anything illegal in regard to this charge, and my right to a hearing to determine if that police conduct was, in fact, illegal. 5. I acknowledge that I have consulted with my attorney about the immigration consequences of my guilty plea, and I have been advised that if I am not a United States citizen, my guilty plea may subject me to immigration proceedings and removal or deportation from the United States. I understand that the immigration consequences of my plea will be imposed in a separate proceeding before the immigration authorities. I wish to plead guilty to the charged offense regardless of any immigration consequences of my guilty plea, even if my guilty plea will cause my removal from the United States. I understand that I am bound by my guilty plea regardless of any immigration consequences of the plea. Accordingly, I waive any and all challenges to my guilty plea and sentence based on any immigration consequences, and agree not FOIL G000316-041918 000036 to seek to withdraw my guilty plea, or to ?le a direct appeal or any kind of collateral attack challenging my guilty plea, conviction, or sentence, based on any immigration consequences of my guilty plea. 6. I Further, in consideration for and as part of the plea agreement in this matter, I hereby waive and relinquish my right to appeal from any judgment of conviction, and from any proceedings herein that may result from this prosecution. I have been advised of my right to appeal, my right to be represented by an attorney on appeal, and my right to have an attorney assigned for me on appeal if I cannot afford one. It is my'understanding and intention that the plea agreement in this matter will be a complete and ?nal disposition of the matter. I make this waiver knowingly and voluntarily after having been fully advised of my rights by the Court and having had a full and fair opportunity to discuss these matters with my attorney. I agree to execute the written waiver of appeal provided to me by Of?ce of the New York State Attorney General. 7. I hereby agree to enter a plea of guilty in accordance with the terms of the plea offer which has been made to me, having consulted with my attorney and having been advised of all of the rights listed above. 8. I will plead guilty to one count of Attempted Combination in Restraint of Trade and Competition in violation of Penal Law 110 and General Business Law 340 and 341, also known as an attempted violation of New York State?s Donnelly Act. 9. At the time of my plea, I will, under oath, admit to the following: I am currently employed by Bert Adams, Disposal, Inc. (?Bert Adams Disposal?). b. Between July 2014 and May 2016 I was employed by Bert Adams, Disposal. c. In or around July 2014 through in or around May 2016, I, along with others at Bert Adams Disposal, attempted to restrain trade by entering into collusive contracts, agreements, arrangements, or combinations thereof (hereafter, ?arrangements?), with individuals from Taylor Garbage Service, Inc. (?Taylor Garbage?), to rig bids for waste-hauling, recycling, and related services. (I. In so doing, I attempted to deprive customers of their right to free competition and required customers to pay higher prices for waste-hauling and related services. FOIL G0003l6-04l918 000037 17 i fl 1 7, e. Speci?cally, in or about March 2015, in the City of Binghamton, in an attempt to restrain competition in the waste-hauling industry, I entered into an arrangement with an employee from Taylor Garbage, in which I agreed to submit a deliberately in?ated price quote to a Taylor Garbage customer located at 20 Front Street in the City of Binghamton, in an effort to ensure that Taylor Garbage would retain that customer and in so doing caused the customer to be unable to avail itself of the bene?ts of competition. 10. In accordance with this plea, I will be sentenced to three years of probation. I fLu'ther understand that as part of my sentence, I will be ordered to pay a thirty-seven thousand ?ve hundred dollar ?ne to the State of New York. 11. In accordance with this plea, I understand that if I pay the above-referenced ?ne in total on or before the date of my sentencing, the Of?ce of the New York State Attorney General will recommend that I receive a sentence of a one-year conditional discharge in lieu of probation. 12. I understand further that this plea agreement in no way releases me from any civil liability that I may have. ?1 13. I hereby agree to enter a plea of guilty in accordance with the terms of the plea offer which has been made to me, having consulted with my attorney and having been advised of all of the rights listed above. 14. I understand these rights, and the terms and conditions of this Plea Agreement, which I have read completely. My plea of guilty is given freely, voluntarily, knowingly, and without coercion of any kind. No threats or promises have been made to me to induce me to plead guilty. 15. I am not under the in?uence of alcohol, drugs, or medication, nor is there any other mental or physical impairment, which prevents me from understanding these proceedings here or from entering this plea knowingly, intelligently and voluntarily. My mind is clear and my judgment is soundVWtai/wt Wt tut/(20% oralcent a Win Wu 9) ?7th ?3&1 ?7ft? 0v ?we? t?m/ PM 07 Wire en pt?ewenut-W? (m q, Ma MW FOILG000316-041918 000038 16. This agreement is limited to the Of?ce of the New York State Attorney General and cannot bind other government agencies. Dated: Binghamton, New York April 2018 Christopher J. Klihe Defendant Agreed by: ?llim AVW Mary A. Gorm I Assistant Attorney General Public Integrity Bureau Witnessed by, ?erpe Ryan By: Silvia L. Serpe, Esq. Attorneys for Defendant The above is hereby approved by, 2 2 Hon. CMA A- Coca-How Binghamton City Court Judge FOIL G000316-041918 000039 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against- 3 PLEA AGREEMENT E. ADAMS (DOB Defendant. STATE OF NEW YORK COUNTY OF BROOME 1. l, ELBERT E. ADAMS, the undersigned defendant, have been charged in Broome County Court, County of Broome, State of New York, by Superior Court Information Number with one count IN OF TRADE AND COMPETITION, a class felony, in violation of General Business Law 340 and 341, also known as a violation of New York State?s Donnelly Act. 2. My attorney is Michael A. Berlin, Esq., who is present in the court with me today. I am satis?ed with the representation provided to me by my attorney. I understand that I have a right to have an attorney throughout the prosecution and trial of these charges and if I cannot afford an attorney, one would be appointed for me. 3. have been advised of, and understand, the nature of the charges against me, the elements of the offenses with which I am charged, and the range of permissible sentences. The maximum permissible sentence for the crime of Combination in Restraint of Trade and Competition in violation of General Business Law 340 and 341 is an indeterminate state prison sentence of one-and-one-third to four years and a ?ne of one hundred thousand dollars or double the amount of the defendant?s gain from the crime, whichever is greater. FOIL G0003 16-041918 000040 4. By pleading guilty I am giving up the following rights, which I have discussed with my attorney: a. I understand that by pleading guilty I am giving up my right to a trial by a jury drawn from a broad cross-section of the community. b. I understand that by pleading guilty I am giving up my right to have the People produce witnesses to testify against me. c. I understand that by pleading guilty I am giving up my right to have my attorney cross?examine any witnesses who may testify against me. (1. I understand that by pleading guilty I am giving up my right to have my attorney produce witnesses to testify for me. e. I understand that by pleading guilty I am giving up my right to remain silent and my right to either testify or not testify at trial. f. I understand that by pleading guilty I am giving up my right to have the People prove my guilt beyond a reasonable doubt by a unanimous verdict of all jurors at trial. g. I understand that by pleading guilty my plea will operate just like a conviction of guilty after a jury trial. h. I understand that by pleading guilty, if I have a defense to this charge, I am giving up my right to present that defense at trial. FOIL G000316-041918 000041 5. I acknowledge that I have consulted with my attorney about the immigration consequences of my guilty plea, and I have been advised that if I am not a United States citizen, my guilty plea may subject me to immigration proceedings and removal or deportation from the United States. I understand that the immigration consequences of my plea will be imposed in a separate proceeding before the immigration authorities. I wish to plead guilty to the charged offense regardless of any immigration consequences of my guilty plea, even if my guilty plea will cause my removal from the United States. I understand that I am bound by my guilty plea regardless of any immigration consequences of the plea. Accordingly, I waive any and all challenges to my guilty plea and sentence based on any immigration consequences, and agree not to seek to withdraw my guilty plea, or to ?le a direct appeal or any kind of collateral attack challenging my guilty plea, conviction, or sentence, based on any immigration consequences of my guilty plea. 6. Further, in consideration for and as part of the plea agreement in this matter, I hereby waive and relinquish my right to appeal from any judgment of conviction, and from any proceedings herein that may result from this prosecution. I have been advised of my right to appeal, my right to be represented by an attorney on appeal, and my right to have an attorney assigned for me on appeal if I cannot afford one. It is my understanding and intention that the plea agreement in this matter will be a complete and ?nal disposition of the matter. I make this waiver knowingly and voluntarily after having been fully advised of my rights by the Court and having had a full and fair opportunity to discuss these matters with my attorney. I agree to execute the written waiver of appeal provided to me by the Of?ce of the New York State Attorney General. 7. I hereby agree to enter a plea of guilty in accordance with the terms of the plea offer which has been made to me, having consulted with my attorney and having been advised of all of the rights listed above. 8. I will plead guilty to one count of Combination in Restraint of Trade and Competition in violation of General Business Law 340 and 341, also known as a violation of New York State?s Donnelly Act. FOIL G000316-04l918 000042 At the time of my plea, I will, under oath, admit to the following: I am currently the seventy-?ve percent owner and the Chief Executive Of?cer of Bert Adams, Disposal, Inc. (?Bert Adams Disposal?). Between July 2014 and May 2016 I was the seventy-?ve percent owner and the Chief Executive Of?cer of Bert Adams, Disposal. In or around July 2014 through in or around May 2016, I, along with others at Bert Adams Disposal, knowingly and intentionally entered into collusive contracts, agreements, arrangements, or combinations thereof (hereafter, ?arrangements?), with individuals from Taylor Garbage Service, Inc. (?Taylor Garbage?), to rig bids for waste-hauling, recycling, and related services. These arrangements included, among others, i. agreeing in advance which company would win a particular bid and then either agreeing not to submit a bid to ensure that the agreed-upon company would win the contract, or by submitting deliberately in?ated bids and price quotes to prospective customers to ensure that the incumbent would keep its customers; and ii. agreeing not to pursue the business of each other?s current customers through active solicitation or through price competition. In entering into these arrangements, I deprived customers of their right to free competition and in turn forced customers to pay excessive prices for waste- hauling and related services. I, along with others at Bert Adams Disposal, carried out this collusive conduct by various means, including through telephone calls and text messages in which I and others exchanged price information and arranged bids with Taylor Garbage so that neither company would offer a more favOrable price to the other?s existing customers. FOIL G000316-041918 000043 g. As the majority owner and Chief Executive Of?cer of Bert Adams Disposal, I had primary supervisory responsibility for and was actively involved in managing the day-to-day operations of Bert Adams Disposal, including managing all aspects of subordinate employees and managing the pricing and bidding activities of Bert Adams Disposal. h. As the majority owner and Chief Executive Of?cer of Bert Adams Disposal, I was aware of and approved of the collusive arrangements to rig bids and restrain competition described previously. i. I understand'that the conduct I have admitted today is a violation of General Business Law 340 and 341, also known as New York State?s Donnelly Act. 10. In accordance with this plea, I will be sentenced to ?ve years of probation. I further understand that as part of my sentence, I will be ordered to pay a seventy-?ve thousand dollar ?ne to the State of New York. 11. In accordance with this plea, I understand that if I pay the above?referenced ?ne in total on or before the date of my sentencing, the Of?ce of the New York State Attorney General will recommend that I receive a sentence of a three-year conditional discharge in lieu of probation. 12. I understand further that this plea agreement in no way releases me from any civil liability to third parties that I may have. 13. I understand that the Of?ce of the Attorney General will not pursue a civil action pursuant to General Business Law 340 and 341 against me for conduct, during the referenced time period of July 2014 through May 2016, described in this plea agreement or in the corresponding felony complaint ?led on April 4, 2018. 14. I hereby agree to enter a plea of guilty in accordance with the terms of the plea offer which has been made to me, having consulted with my attorney and having been advised of all of the rights listed above. 15. I understand these rights, and the terms and conditions of this Plea Agreement, which I have read completely. My plea of guilty is given freely, voluntarily, knowingly, and without coercion of any kind. No threats or promises have been made to me to induce me to plead guilty. FOIL G000316-041918 000044 16. I am not under the in?uence of alcohol, drugs, or medication, nor is there any other mental or physical impairment, which prevents me from understanding these proceedings here or from entering this plea knowingly, intelligently and voluntarily. My mind is clear and my judgment is sound. 17. This agreement is limited to the Of?ce of the New York State Attorney General and cannot bind other government agencies. Dated: Binghamton, New York April 9] 2018 ww? Elbert E. Adams Defendant Agreed by: ll HQ .4 A Def?W Mary A. Gorman Assistant Attorney General Public Integrity Bureau Witnessed by, ZWM ma. Michael A. Berlin, Esq. Attorney for Defendant The above is hereby approved by, b? Hon. Joseph F. Cawley Broome County Court Judge FOIL G0003l6-04l918 000045 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against- SUPERIOR COURT 5 INFORMATION NO. 18-157 (AG) ELBERT E. ADAMS (DOB Defendant. STATE OF NEW YORK COUNTY OF BROOME ss.: SUPERIOR COURT INFORMATION, ORDER AND WAIVER COMBINATION IN RESTRAINT OF GENERAL BUSINESS LAW TRADE AND COMPETITION 340 and 34] ERIC SCHNEIDERMAN Attorney General State of New York 120 Broadway, New York, NY 10271-0332 FOIL G0003 16-041918 000046 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against- SUPERIOR COURT 5 INFORMATION No. 18-157 (AG) ELBERT ADAMS (DOB 01/02/1953), Defendant. COUNT ONE 1, ERIC T. SCHNEIDERMAN, ATTORNEY GENERAL OF THE STATE OF NEW YORK, by this Superior Court Information, accuse the defendant of the crime of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, in Violation of General Business Law 340 and 341, committed as follows: In or about July 2014 through in or about May 2016, in the County of Broome, the defendant knowingly and intentionally entered into or engaged in or continued to engage in, a contract, agreement, arrangement, or combination in unreasonable restraint of competition and the free exercise of activity in the conduct of business, trade, and commerce, to wit, in or about July 2014 through in or about May 2016, in Broome County, the defendant, acting in concert with others, knowingly and intentionally entered into collusive contracts, agreements, arrangements, or combinations thereof, to rig bids for waste-hauling, recycling, and related FOIL G000316-041918 000047 services, depriving customers of their right to free competition and in turn forcing customers to pay excessive prices for services. Dated: April j_ 2018 ERIC T. SCHNEIDERMAN Attorney General of the State of New York By: ii ?(it A i Mary A. boiman, Assistant Attorney General Public Integrity Bureau 000048 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against- SUPERIOR COURT 5 INFORMATION No. 18-157 (AG) ELBERT E. ADAMS (DOB -, Defendant. WAIVER OF INDICTMENT AND ORDER PURSUANT TO CPL ARTICLE 195.00 Defendant hereby waives indictment and consents to be prosecuted by a Superior Court Information charging the Offenses of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, in violation of General Business Law 340 and 341, a class felony. A copy of that Superior Court Information is attached hereto and is a part of this waiver. Defendant is aware of the following: Under the Constitution of the State of New York, the defendant has the right to be prosecuted by Indictment ?led by Grand Jury; Defendant waives such right and consents to be prosecuted by Superior Court Information to be ?led by Attorney General Eric T. Schneiderrnan; The Superior Court Information to be ?led by the Attorney General will charge the Offense named in this written waiver; and The Superior Court Information to be ?led by the Attorney General will have the same force and effect as an Indictment ?led by a Grand Jury. Signed in open court, and in the presence of my attorney, ELBERT E. ADAMS, Defendant FOIL G0003 16-041918 000049 I have explained this waiver to Defendant, who has signed it in open court, and in my presence. Michael A. Berlin, Attorney for Defendant l, the Attorney General of the State of New York, hereby consent to this waiver. ERIC T. SCHNEIDERMAN Attorney General State of New York By: M, Mary A. Gorman, Assistant Attorney General Public Integrity Bureau This Court being satis?ed that this waiver complies with the provisions of CPL 195.10 and 195.20, it is ORDERED that this waiver is approved. Dated: Binghamton, NY April 3 2018 HON. ?54 Z5 61% BROOME UNTY co UDGE FOIL G000316-041918 000050 STATE OF NEW YORK BROOME COUNTY COURT COUNTY OF BROOME THE PEOPLE OF THE STATE OF NEW YORK -against? SUPERIOR COURT INFORMATION No. 18-157 (AG) ELBERT E. ADAMS (DOB Defendant. WAIVER OF RIGHT TO APPEAL The undersigned Defendant, in consideration of and as part of the plea agreement entered into, hereby waives any and all rights to appeal from the plea, judgment of conviction and sentence in the above-captioned matter. Defendant executes this waiver after being advised by the Court of the nature of the rights being waived, including the right to take an appeal pursuant to CPL 450.10, the right to prosecute the appeal as a poor person and to have an attorney assigned in the event that the undersigned is indigent, and the right to submit a brief and/or argue before an appellate court on any issues relating to the plea, conviction and sentence. Defendant represents that this waiver is being voluntarily, knowingly and freely executed by him. (?ab/gas ELBERT E. ADAMS, Defendant The undersigned attorney represents that prior to the signing of the foregoing waiver, the above-named defendant was fully advised of the rights of a convicted person to take an appeal under the laws of New York State. he undersigned further represents that, in his professional opinion, the instant waiver by the defendant of the right to appeal was voluntarily, knowingly and freely made. The undersigned recommends to the Court that this waiver be approved. Wm Michael A. Berlin, Attorney for Defendant FOIL G000316-041918 000051 The defendant executed the foregoing waiver in the presence of this Court, and with the approval of this Court and the advice and consent of the Defendant?s attorney and after the Court reviewed this waiver with Defendant. Dated: Bingharnton, NY April 2018 HON. BROOME COUNTY COURT mm FOIL G000316-041918 000052 STATE OF NEW YORK BINGHAMTON CITY COURT COUNTY OF BROOME CITY OF BINGHAMTON THE PEOPLE OF THE STATE OF NEW YORK -against- FELONY COMPLAINT ELBERT E. ADAMS (DOB Defendant. STATE OF NEW YORK COUNTY OF BROOME ss.: JOEL CORDONE, an Investigator with the Criminal Division of the New York State O?ice of the Attorney General deposes and says that the defendant committed the following crime: COUNT ONE COMBINATION IN RESTRAINT OF TRADE-AND COMPETITION, a class felony, in violation of New York State General Business Law 340 and 341 in that the defendant, in or about July 2014 through in or about May 2016, in the City of Binghamton and County of Broome, knowingly and intentionally entered into or engaged in or continued to engage in, a contract, agreement, arrangement, or combination in unreasonable restraint of competition and the free exercise of activity in the conduct of business, trade, and commerce, to wit, in or about the referenced time period, in the City of Binghamton and throughout Broome County, the defendant, acting in concert with others, knowingly and intentionally entered into collusive contracts, agreements, arrangements, or combinations thereof, to rig bids for waste-hauling, recycling, and related services, depriving ,9 :6 HV s- muz, mos Jig-mas? FOIL G0003 16-041918 000053 customers of their right to free competition and in turn forcing customers to pay excessive prices for services. This Complaint is based on information and belief the sources of which are my investigation conducted on behalf of the GAO, including but not limited to, the review and analysis of business records, telephone records and other records, interviews of witnesses. and other investigative techniques, among other sources. FACTUAL BASIS This crime was committed under the following circumstances: I. Bert Adams Disposal, Inc. (?Bert Adams DiSposal?) is a family-owned corporation established in 1976, incorporated under the laws of New York State, and is located at 521 Main Street, Chenango Bridge, New York 13745 in Broome County. 2. Bert Adams Disposal provides various waste-management services, including trash collection, transfer and disposal, recycling services, commercial roll-off container rentals, and delivery and pick-up. 3. Bert Adams Disposal serves a variety of residential, commercial and municipal customers in New York State, including Broome, Chenango, Delaware, Cortland, Madison and Otsego counties. 4. Elbert E. Adams, (?Bert Adams?), DOB is, and was during the relevant and referenced time period, the majority owner and Chief Executive Of?cer of Bert Adams Disposal, and served and continues to serve in a supervisory and managerial capacity over subordinate employees' FOIL G000316-041918 000054 7. Witness interviews, corroborated by my review of phone records and business records, revealed that in or around July 2014, Bert Adams and others from Bert Adams Disposal, conspired with individuals from competitor Taylor Garbage Service, Inc. (?Taylor Garbage?) to rig bids, allocate customers and ?x prices for Bert Adams DiSposal?s waste hauling and recycling services. For example, I reviewed phone records that revealed the following text messages between Bert Adams and Robert Taylor, President of Taylor Garbage, indicating the approximate start to the conSpiracy: From To Date Time Content Robert Bert Adams 07/16/14 2:54:56 Just wondering if you would be Taylor willing to sit down sometime with Pat and I and talk about things in the battle ?eld. I'd like to try to work out a plan to work with each other rather than working against each other. Because the customer is the only one that wins when we're at each others throat. Give it some thought and let me know. BT Bert Bob Taylor 07/16/14 3:04:10 Yes anytime just tell me where Adams got to meet you Robert Bert Adams 07/16/14 3:10:45 Good, let me check the schedule Taylor lol and get back to you. Probably eany next week sometime Witness interviews, corroborated by my review of business records and phone records, revealed that Bert Adams and others at Bert Adams Disposal and Taylor Garbage continued I this conspiracy through in-person meetings, phone calls, and text messages. FOIL G000316-041918 000055 10. ll. 12. The investigation revealed that as part of the conspiracy, Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage participated in a form of bid rigging known as ?cover bidding? which occurs when a competitor deliberately submits an arti?cially high bid they believe the customer will reject, thus creating the appearance that the winner?s bid is legitimately competitive and ensuring that the agreed-upon competitor will win the bid. The investigation revealed that Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage, regularly submitted in?ated bids and price quotes to ensure that the other company would keep its current customers without raising suspicion by being the only bidder. For example, the investigation revealed that in 2015, the Airport Inn Bar Grill, a restaurant located in Bingharnton, New York and a Bert Adams Disposal customer, requested a price quote from Taylor Garbage. Bert Adams Disposal and Taylor Garbage agreed that Taylor Garbage would submit an in?ated quote to ensure that Bert Adams Disposal kept the account. The investigation further revealed that as part of the conspiracy, Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage participated in a form of bid rigging known as ?bid suppression? which occurs when a competitor agrees that it will not submit a bid to ensure that its competitor will win a contract. For example, the investigation revealed that in 2015, Pier 1 Imports in Vestal, New York, a Bert Adams customer, requested a price quote from Taylor Garbage. Taylor Garbage and Bert Adams Disposal agreed that Taylor Garbage would not submit a quote to Pier 1, ensuring that Bert Adams retained the account. FOIL G000316-041918 000056 13. 14. 15. 16. The investigation further revealed that as part of the conspiracy, Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage participated in ?price ?xing,? which occurs when competitors enter into a contract, agreement, arrangement, or combination thereof to ?x the price of a product or service, thereby in?ating the prices paid by consumers. For example, my review of phone records revealed the following text exchange between Bert Adams and Robert Taylor: From To Date Time Content Robert Bert Adams 05I04I15 4:28:48 Did I hear a rumor that your going Taylor to raise your residential rates? Bert Bob Taylor 05/04/15 4:31:01 Yes but I'll let you know when and Adams i how much Robert Bert Adams 05/04/15 4:34:26 Good. I'll get start working on pat Taylor now and in time l?ll get her to think it?s her idea and join in on the raise. The investigation further revealed that as part of the conspiracy, Bert Adams and others at Bert Adams Disposal, along with individuals from Taylor Garbage participated in ?market allocation,? which includes contracts, agreements, arrangements or combination thereof, between competitors, that they will not compete with respect to speci?ed customers, geographical territories or products. For example, the investigation revealed that in March 2015, Broome Developmental Services issued a bid for its satellite locations across several counties. Bert Adams' Disposal and Taylor Garbage allocated the Broome County locations among themselves FOIL G000316-041918 000057 I7. 18. 19. 20. 21. and either bid or refrained from bidding accordingly. Outside of Broome County, the companies allocated accounts along a geographic boundary. Speci?cally, Taylor Garbage placed ?no bids? on Chenango County, Delaware County and Otsego County while Bert Adams Disposal placed bids within each of those locations. Meanwhile, Bert Adams Disposal did not bid on any Tioga County locations, while Taylor Garbage placed bids for all Tioga County locations. The records I reviewed, along with testimony from witnesses, revealed that as a result of the above-referenced collusion customers were deprived of their right to free competition and forced to pay excessive prices for waste?hauling services. The records 1 reviewed, along with testimony from witnesses, revealed that as a result of the aboveareferenced collusion, Bert Adams Disposal bene?tted ?nancially. As the majority owner and Chief Executive Of?cer of Bert Adams Disposal, Bert Adams had primary supervisory responsibility for and was actively involved in managing the day- to-day operations of Bert Adams Disposal, including managing all aspects of subordinate employees and managing the pricing and bidding activities of Bert Adams Disposal. Witness interviews, corroborated by my review of business records and phone records, revealed that Bert Adams was critical to the initiation of the conspiracy, was aware of and approved the contracts, agreements, arrangements or combination thereof throughout the course of the conspiracy, and was a necessary party to the ultimate agreement to conclude the conspiracy with Taylor Garbage. As such, Bert Adams, acting in concert with others, knowingly and intentionally, entered into collusive contracts, agreements, arrangements, or combinations thereof, to rig bids for FOIL G000316-041918 000058 waste-hauling, recycling, and related services, depriving customers of their right to free competition and in turn forcing customers to pay excessive prices for services. WHEREFORE 1 REQUEST THAT AN ARREST WARRANT BE ISSUED FOR DEFENDANT ELBERT E. ADAMS. Notice: False statements made herein are punishable as a Class A misdemeanor pursuant to New York State Penal Law 210. 45 Dated: April 152018 $1.553 cm. *sz IN ESTIGATOR JOEL CORDONE New York State Attorney General?s Of?ce FOIL G000316-041918 000059 FOIL G000316-041918 000060 ATTORNEY GENERAL OF THE STATE OF NEW YORK ANTITRUST BUREAU In the Matter of Assurance No. 18-026 Investigation by ERIC T. SCHNEIDERMAN, Attorney General of the State of New York, of Taylor Garbage Service, Inc., Respondent. OF DISCONTINUANQE The Of?ce of the Attorney General of the State of New York commenced an investigation pursuant to Executive Law 63(12) and General Business Law 343 into collusion among waste haulers in the Broome County area. This Assurance of Discontinuance (?Assurance?) contains the ?ndings of investigation and the relief agreed to by NYAG and Taylor Garbage Service, Inc. (?The Company?). FINDINGS I. The Company is a corporation engaged in the business of collecting and transporting solid waste and recycling, and operates primarily in Broome County. 2. Bert Adams Disposal, Inc. is also engaged in the business of collecting and transporting solid waste, and also operates primarily in Broome County. 3. In approximately July 2014, representatives of the Company and BAD met to discuss competition in their market. At or shortly after this meeting, the two parties agreed that they would no longer solicit one another?s existing customers by offering lower prices. FOIL G000316-041918 000061 4. The Company and BAD routinely agreed in advance which company would win a particular bid, regularly exchanged information about the rates they were charging current customers as well as the rates that they proposed to submit in bids, and agreed not to pursue the business of each other?s current customers through active solicitation or through price competition. 5. The Company and BAD regularly submitted deliberately in?ated bids and price quotes to prospective customers to ensure that the incumbent would keep its customers. These ?cover bids? were submitted because an outright refusal to submit a bid to a prospective customer could have caused that customer to su5pect collusion between the Company and BAD. If either company inadvertently placed a winning bid with one of its co-conSpirator?s historical customers, the company would typically withdraw that winning bid or price quotation, so that the business would remain with the incumbent provider. 6. Agents of the Company and BAD carried out the collusive conduct by various means, including through hundreds of telephone calls and text messages in which they exchanged price information and arranged bids so that neither company would offer a more favorable price to the other?s existing customers. 7. NYAG finds that, through the above-described conduct, the Company entered into contracts, agreements, arrangements or combinations whereby competition has been restrained, all in violation of The Donnelly Act (General Business Law 340). PROSPECTIVE RELIEF WHEREAS, the Company admits Findings above; WHEREAS, NYAG is willing to accept the terms of this Assurance pursuant to Executive Law 63(15) and to discontinue its investigation; 2 FOIL 16-041918 000062 WHEREAS, the parties each believe that the obligations imposed by this Assurance are prudent and appropriate; and WHEREAS, this Assurance re?ects the Company?s admission of wrongdoing and timely cooperation that helped advance investigation; IT IS HEREBY UNDERSTOOD AND AGREED, by and between the parties that: 8. The Company shall not engage in collusive or otherwise anticompetitive conduct. 9. The Company shall implement an antitrust compliance program consisting of the following: 3. Within ten (IO) calendar days of execution of this Assurance, the Company shall communicate with all its personnel to inform them that the Company has executed this Assurance and (ii) outline the conduct prohibited by this Assurance. b. Within thirty (30) calendar days of execution of this Assurance, the Company shall designate an individual, without any connection to the conduct described in paragraphs (1H7) above, to serve as a compliance officer and to discharge the duties set forth below, and no attomey-client or other professional relationship shall be formed between the compliance of?cer and the Company. The person designated as the compliance of?cer shall be responsible for developing, implementing, and administering an antitrust compliance plan and ensuring that the Company complies with the terms and conditions of the compliance plan and this Assurance. c. Within thirty (30) calendar days of execution of this Assurance, the Company shall provide the NYAG with a sworn statement con?rming that it has taken the steps required to comply with this Assurance and setting forth such compliance (the FOIL G000316-041918 000063 ?Certi?cation?). The Certification shall include the information contained in the communications to personnel, the identity of the designated compliance of?cer, and a description of the compliance program as required by this paragraph. d. For each of the three years following the execution of this Assurance, the Company shall provide the NYAG with an annual report of the status of the compliance program. e. The Company expressly agrees and acknowledges that a default in the performance of any obligation under this paragraph is a violation of the Assurance, and that the NYAG thereafter may commence the civil action proceeding contemplated in paragraph 14 of this Assurance, in addition to any other appropriate investigation, action, or proceeding, and that evidence that the Assurance has been violated shall constitute prima facie proof of the statutory violations described in paragraph 18, pursuant to Executive Law 63(l5). 10. The Company shall submit itself to antitrust oversight by NYAG as follows: a. The Company shall retain all records relating to its obligations under this Assurance, including copies of all correspondence, emails, and memoranda communicating to all its personnel its obligations pursuant to this Assurance. The Company shall, upon thirty (30) days? written notice from the NYAG, provide all documentation and information necessary for the NYAG to verify compliance with this Assurance. b. The Company shall, upon request by NYAG, permit NYAG to interview, either informally or on the record, the Company?s of?cers, employees, or agents, who Page 4 of 10 FOIL 60003 16-041918 000064 may have their individual counsel present, regarding compliance with this Assurance. The interviews shall be subject to the reasonable convenience of the interviewee and without restraint or interference by the Company. 1 1. The Company agrees that it will pay by wire transfer, payable to the State of New York, ?ve hundred thousand dollars in penalties, fees and costs pursuant to the following schedule: 0 $250,000.00 within ten (IO) business days of execution of this Assurance (the ?First Payment?); 0 $125,000.00 within one (1) year of the First Payment (the ?Second Payment? and 0 $125,000.00 within one (1) year of the Second Payment. 12. Any payments and all correspondence related to this Assurance must reference Assurance #18-026. 13. To secure the payment described by paragraph the Company will execute and deliver, at the time of the execution and delivery of this Assurance, the accompanying Af?davit for Judgment by Confession (attached hereto as Exhibit A), confessing judgment for the Monetary Relief Amount of $500,000, plus collection fees of twenty two percent of any unpaid Monetary Relief Amount at the time of any subsequent default, plus statutory costs of $15.00. NYAG will reduce the Monetary Relief Amount by the principal amount of payments made by the Company to NYAG to calculate the Unpaid Monetary Relief Amount at the time of any subsequent default. 14. In the event that the Company fails to timely and properly make payment as required by paragraph 1 l, NYAG shall provide the Company with written notice, by ?rst class Page 5 of 10 FOIL G000316-041918 000065 mail, of such failure. If the Company does not cure such failure within 30 days of written notice, NYAG may ?le and enter the applicable Af?davit for Judgment by Confession as a judgment against the Company, at any time, and without further notice, for the balance owed pursuant to this Assurance at the time of default, less any payments made prior to default, plus the collection fees and statutory costs described above. 15. The Company represents and warrants that the signatory below has been duly authorized to and has the authority to sign an Af?davit for Judgment by Confession on behalf of the Company, as per the corporate resolution attached hereto as Exhibit B. 16. The Company agrees to provide a copy of this Assurance to any current, former, or prospective customer of the Company who, either formally or informally, seeks, requests or otherwise asks the Company, through its employees or agents, about investigation into collusion among waste haulers in the Broome County area. Page 6 of 10 FOIL G000316-041918 000066 MISCELLANEOUS l7. NYAG has agreed to the terms of this Assurance based on, among other things, the representations made to NYAG by the Company and their counsel and own factual investigation as set forth in Findings above. To the extent that any material representations are later found to be inaccurate or misleading, this Assurance is voidable by the NYAG in its sole discretion. If the Assurance is voided or breached, the Company agrees that any statute of limitations or other time-related defenses applicable to the subject of the Assurance and any claims arising from or relating thereto are tolled from and after the date of this Assurance. in the event the Assurance is voided or breached, the Company expressly agrees and acknowledges that this Assurance shall in no way bar or otherwise preclude NYAG from commencing, conducting or prosecuting any investigation, action or proceeding, however denominated, related to the Assurance, against the Company, or from using in any way any statements, documents or other materials produced or provided by the Company prior to or after the date of this Assurance. 19. No representation, inducement, promise, understanding, condition, or warranty not set forth in this Assurance has been made to or relied upon by the Company in agreeing to this Assurance. 20. The Company represents and warrants, through the signatures below, that the terms and conditions of this Assurance are duly approved, and execution of this Assurance is duly authorized. The Company shall not take any action or make any statement denying, directly or indirectly, the propriety of this Assurance or expressing the view that this Assurance is without factual basis. Nothing in this paragraph affects the Company?s testimonial Page 7 of 10 FOIL 000067 obligations or (ii) right to take legal or factual positions in defense of litigation or other legal proceedings to which NYAG is not a party. This Assurance is not intended for use by any third party in any other proceeding and is not intended, and should not be construed, as an admission of liability by the Company. 21. This Assurance may not be amended except by an instrument in writing signed on behalf of all the parties to this Assurance. 22. This Assurance shall be binding on and inure to the bene?t of the parties to this Assurance and their respective successors and assigns, provided that no party, other than NYAG, may assign, delegate, or otherwise transfer any of its rights or obligations under this Assurance without the prior written consent of NYAG. 23. In the event that any one or more of the provisions contained in this Assurance shall for any reason be held to be invalid. illegal, or unenforceable in any re5pect, in the sole discretion of the NYAG such invalidity, illegality, or unenforceability shall not affect any other provision of this Assurance. 24. To the extent not already provided under this Assurance, the Company shall, upon request by NYAG, provide all documentation and information necessary for NYAG to verify compliance with this Assurance. 25. All notices, reports, requests, and other communications to any party pursuant to this Assurance shall be in writing and shall be directed as follows: If to the Firm to: Taylor Garbage Service, Inc. c/o David G. Burch, Esq. Barclay Damon LLP 125 East Jefferson Street Syracuse, New York 13202 Page 8 of 10 FOIL G000316-041918 000068 lfto NYAG, to: Zach Biesanz New York State Of?ce of the Attorney General Antitrust Bureau 120 Broadway New York, New York [0271 26. Acceptance of this Assurance by NYAG shall not be deemed approval by NYAG of any of the practices or procedures referenced herein, and the Company shall make no representation to the contrary. 27. Pursuant to Executive Law 63(15), evidence of a violation of this Assurance shall constitute primafacie proof of violation of the applicable law in any action or proceeding thereafter commenced by NYAG. 28. If a court of competent jurisdiction determines that the Company has breached this Assurance, the Company shall pay to NYAG the cost, if any, of such determination and of enforcing this Assurance, including without limitation legal fees, eXpenscs, and court costs. 29. The NYAG finds the relief and agreements contained in this Assurance appropriate and in the public interest. The NYAG is willing to accept this Assurance pursuant to Executive Law 63(15), in lieu of commencing a statutory proceeding. This Assurance shall be governed by the laws of the State of New York without regard to any con?ict of laws principles. 30. Nothing contained herein shall be construed as to deprive any person of any private right under the law. 31. This Assurance may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement. Page 9 of 10 FOIL 16-041918 000069 IN WITNESS WHEREOF, this Assurance is executed by the parties hereto on March 30, 2018. ERIC T. SCHNEIDERMAN Attorney General of the State of New York 120 Broadway New York, NY 10271 Zach Biesanz (Esq Assistant Attorney General TAYLOR GARBAGE SERVICE, INC. 3104 Old Vestal Rd. Vestal, NY 13850 ?ak By: David Bl?h) Es ounsel for Company - k- . By' #qvirWVT?nyc?; Robert Taonr, President Taylor Garbage Service, Inc. Page 10 of 10 FOIL G000316-041918 000070