Dupo man admits bribery in getting VA contracts intended for disabled veterans

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Dupo man admits bribery in getting VA contracts intended for disabled veterans
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ST. LOUIS • A man pleaded guilty in federal court Wednesday to a conspiracy charge, admitting he bribed a U.S. Department of Veterans Affairs official with cash, baseball tickets and strip club lunches to steer business to a company that used a disabled veteran as figurehead.

As part of his plea, Joseph Madlinger, 71, a retired civil engineer from Dupo, acknowledged that he helped set up a company called CJMS Contracting LLC, with a service-disabled veteran named James Browdy at its helm.

Prosecutors and Madlinger said that Browdy was simply acting as a "rent-a-vet" to draw contracts that were supposed to favor businesses run by disabled veterans. Prosecutors said Browdy had no experience running a construction company and did not have the assets or experience to start a company. They said his only role was acting as the owner of CJMS, a shell company.

The bulk of the work was done by — and money passed along to — a St. Louis County company called Gateway Contractors, run by Michael Woodling, court documents say.

Prosecutors say bribes went to Russell Todd, a VA employee who allegedly received cash, good seats for Cardinals games and lunches at a St. Louis tavern and a "gentlemen's club" in Sauget.

In 2007, when the conspiracy began, Todd was chief of projects or chief engineer at a VA hospital in St. Louis and also played a role at Jefferson Barracks National Cemetery, officials said. He is now retired.

No one else has been charged. Neither Todd's lawyer nor Browdy could be reached Wednesday to comment.

Madlinger could face up to four years in prison under federal sentencing guidelines and will be ordered to repay roughly $1.6 million.

In 2007-10, the conspiracy won about $3.4 million worth of contracts for work through the VA, officials said, resulting in roughly $500,000 in profit for Gateway. Madlinger and Browdy received roughly $300,000 from CJMS, and Madlinger got about $750,000 from Gateway, prosecutors said.

Assistant U.S. Attorney Tom Albus told U.S. District Judge Catherine Perry it appeared that more than $1 million would be forfeited from "another individual" in the case, reducing what Madlinger must repay.

Asked whether Woodling will face charges, his lawyer, Scott Rosenblum, said: "That's unknown at this time. We've been in discussions with the assistant U.S. attorney. Ongoing discussions."

"I think he's universally considered a hardworking man of very good character that's done a tremendous amount for the city of St. Louis," Rosenblum said.

Copyright 2012 stltoday.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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