Goff paid kickbacks to Steven R. Byers and Lonnie Carroll in exchange for unauthorized reductions in the prices of finished steel coils produced by plants managed by Byers and Carroll.
"Instead of selling products for their true value, Byers and Carroll, acting on behalf of their respective companies, agreed to fraudulently downgrade the quality and price of the steel coils they sold to Goff in return for receiving hundreds of thousands of dollars in kickbacks from Goff," United States Attorney Sally Quillian Yates said.
Byers was assistant plant manger for Metal Coaters of Georgia located in Marietta, Carroll was plant manger for Doublecote in Jackson, Miss., and Goff owned Cannon Services in Dallas.
Between March 2001 and December 2008 Goff paid Byers $110,470 in kickbacks. In return Byers sold Goff's company primary quality finished steel coils at secondary quality prices. Because of the fraud Metal Coaters lost over $900,000.
Between November 2001 and March 2006, Goff paid Carroll $252,796 in kickbacks. In return Carroll sold Goff's company secondary quality finished steel coils at scrap prices. In order to do so, Carroll manipulated Doublecote's record-keeping system to make it appear that secondary quality steels coils were of scarp quality. Because of that fraud, Doublecote lost $364,064.
"The profit they enjoyed for a brief time has now been eclipsed by the imposition of a prison sentence and an order of restitution," she said.
Byers and Carroll also received at least one year in prison and three years of supervised release. Goff was also ordered to pay restitution in an amount yet to be determined by the court.
Reginald Moore, Special Agent in Charge, United States Secret Service, Atlanta Field Office, said the Secret Service will continue to work with federal law enforcement partners to investigate those who commit fraud.