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Ex-controller faces federal charges

West Pittston man accused of bribery, fraud and theft charges in connection with long-running case.

SCRANTON – The former Tobyhanna Army Depot controller faces bribery and related charges after officials say he received $16,000 in cash and merchandise for directing contracts to a New York-based computer company.

Ludwig John Manganiello II, 61, of West Pittston, was charged with one count each of bribery of public officials, mail and wire fraud, and theft of United States property, according to charges filed with the U.S. District Court for the Middle District of Pennsylvania.

Manganiello is accused of being involved in a series of secret business arrangements between February 2001 and November 2005 with Computer Giants, Inc. He is the latest person to be accused in the long-running bribery case at Tobyhanna.

According to court documents, he and Tobyhanna co-conspirators shipped government property from the depot to Computer Giants for alleged repairs. Repairs were not necessary, however, the charges state.

The undamaged goods were then resold to Tobyhanna as if it were new equipment, according to the documents.

Computer Giants received an estimated $7.8 million in government funds for supplies and services through Tobyhanna-based contracts negotiated by Kafu Stephen Chung, a general manager for Computer Giants. Chung pleaded guilty in March 2007 to conspiracy to defraud the United States government.

In 2002, Manganiello and a co-conspirator traveled to New York City to meet with Chung for the purpose of creating a “slush fund” for personal use, the documents state.

Tobyhanna officials could not be reached for comment Tuesday.

Manganiello declined to comment. He faces a maximum of five years in prison and a $250,000 fine.

Tobyhanna Army Depot, located in Monroe County, designs, manufactures and repairs electronic systems for the U.S. Army and U.S. Air Force.

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