ROCHESTER, NY – Reginald Cannon, 55, of Rochester, received a sentence of two years’ probation, a $200,000 fine, and is ordered to pay restitution amounting to $315,944 for wire fraud, as announced by U.S. Attorney Trini E. Ross.
Assistant U.S. Attorneys Richard A. Resnick and Kyle P. Rossi revealed that Cannon, as the president of Burnett Process, Inc., secured a five-year contract with the United States Army in May 2015 for the production of M98 Gas Particulate Filters. These filters, vital for several military systems, protect against various threats. Burnett Process was contractually bound to certify the compliance of their filter paper supplier and use specific U.S.-based companies, or an approved alternative after rigorous testing.
However, in the production of 3,650 M98 Filters ordered by the Army in 2019, Burnett Process opted for a cheaper, unapproved filter paper from China. This action led to increased profits for Burnett Process. Despite this, Cannon falsely certified the origin and compliance of the filter paper used.
U.S. Attorney Ross stated that such deceitful attempts to maximize profits, especially at the expense of the military’s safety, are unacceptable. “This defendant attempted to cut costs and increase his profits by using products that were not in compliance with the contract entered into by Burnett Process Inc. with the United States Military,” Ross added.
Matthew Scarpino, Special Agent-in-Charge of Homeland Security Investigations Buffalo, emphasized the severe implications of such actions. Patrick J. Hegarty, Special Agent-in-Charge, DCIS Northeast Field Office, reiterated the dedication to ensuring the U.S. military’s safety from compromised supplies.
“Fraudulent activities by employees or contractors who work with the U.S. Army will not be tolerated,” warned Supervisory Special Agent Michael Conner.