Three former GE affiliate executives convicted of fraud

NEW YORK Fri May 11, 2012 7:09pm EDT

A General Electric Company (GE) logo is seen on a toggle switch package in New York January 18, 2012. REUTERS/Shannon Stapleton

A General Electric Company (GE) logo is seen on a toggle switch package in New York January 18, 2012.

Credit: Reuters/Shannon Stapleton

NEW YORK (Reuters) - Three former executives of General Electric Co affiliates were convicted by a federal jury in New York of conspiracy charges related to bid-rigging contracts for the investment of municipal bonds, the U.S. Department of Justice announced.

Dominick P. Carollo, Steven E. Goldberg and Peter S. Grimm were convicted on Friday of conspiracy to commit wire fraud and to defraud the United States.

"The defendants corrupted the competitive bidding process and defrauded municipalities across the country for years," said Deputy Assistant Attorney General Scott D. Hammond.

The convictions are the result of an ongoing investigation into the municipal bond market being conducted by the Department of Justice Antitrust Division's New York Office, the Federal Bureau of Investigation and the Internal Revenue Service -Criminal Investigation unit.

Each of the fraud conspiracy charges carries a maximum penalty per count of five years in prison and a $250,000 fine.

(Reporting by Rebecca Hamilton; editing by Andre Grenon)