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December 18, 2008

ME businessman indicted for bribery

By The Mainebiz News Staff

The former president of Biddeford-based Fiber Materials Inc. faces federal charges that he bribed two government officials to land lucrative federal contracts.

Documents filed Tuesday in federal court in Alabama allege that Maurice Subilia of Kennebunk, who ran Fiber Materials from 1978 to 2007, bribed two employees of the Army's Space and Missile Defense Command in Alabama with payments of $1.2 million delivered over four years, the Portland Press Herald reported. The officials allegedly received checks, were wired money and received a briefcase full of cash from Subilia in exchange for buying items from his companies with little or no value and billing the government more than once for the same item, among other allegations. The government officials pled guilty earlier this year and await sentencing.

Subilia faces up to 20 years in prison and a $500,000 fine if convicted of the charges. Fiber Materials also has filed a lawsuit against Subilia in Maine Superior Court that alleges Subilia established a half-dozen other companies while leading Fiber Materials that competed with it for government contracts, enticed Fiber Materials employees to work for them despite non-compete agreements, and bought Fiber Materials' products at a discount to then sell at a substantial mark-up, according to the paper.

 

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