The U.S. Justice Department’s probe of an alleged conspiracy among aerospace industry executives to restrict employees’ ability to move to other companies and secure better pay broadened Thursday as a federal grand jury in Bridgeport returned an indictment against six executives and managers.
Among those named in the complaint is Mahesh Patel, a Connecticut-based former director of global engineering services at an unnamed major aerospace engineering company and the suspected leader of the conspiracy, according to prosecutors.
Patel was arrested last week and charged with conspiracy in restraint of trade. He was subsequently released from custody on $100,000 bond.
The other five individuals, who had not been previously named or charged, are described as executives of outsource engineering suppliers. They were identified as Harpreet Wasan, Steven Houghtaling and Tom Edwards, all from Connecticut; Gary Prus, of Florida; and Robert Harvey, of South Carolina.
Government attorneys allege the six men conspired with each other and “unnamed others” by agreeing not to hire or solicit workers from each other’s companies. The scheme aimed to suppress competition for workers and keep labor costs from increasing, according to the indictment, and affected thousands of engineers and other aerospace employees involved in design, manufacturing and servicing work.
The defendants and co-conspirators clearly recognized the mutual financial benefit of the secret arrangement, and Patel and certain co-conspirators explicitly referenced that motive in communications with each other, investigators said.
“Conduct that corrupts competition for workers has no place in our economy,” said Assistant Attorney General Jonathan S. Kanter, of the Justice Department’s Antitrust Division. “Our investigation revealed a prolonged and widespread scheme to deprive aerospace workers of the ability to plan their own careers and earn competitive pay. The Department of Justice and our law enforcement partners will continue to hold individuals and companies accountable for criminal conduct aimed at depriving workers of the myriad benefits that flow from competition.”
Authorities did not say what companies the six men worked for, though there are indications Patel worked for East Hartford-based jet engine manufacturer Pratt & Whitney.
A LinkedIn profile for a Mahesh Patel lists employment with Pratt & Whitney for 27 years, with his most recent job title “director, global engineering sourcing,” and there are also references to his employment with the aerospace giant on social media and in published news articles.
A source familiar with Pratt & Whitney said Patel left the company more than a year ago.
Federal officials described Thursday’s indictment as the “first” stemming from an ongoing investigation into labor market allocation in the aerospace field, suggesting more people could eventually be charged.
