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Many are snared in kickback scandal

Associated Press
Published September 19, 2003

DAYTONA BEACH - A company that failed as a concert promoter finally found riches in a business that authorities say illegally targeted government employees willing to risk their jobs for baseball jerseys, gift certificates and hunting equipment.

Nine managers and employees of Stone Cold Chemicals faced felony charges Thursday as government employees across Florida faced unemployment and potential prison time, charged with accepting gifts that came with their purchases of high-priced cleaners.

"What really is sad ... is they jeopardized their jobs for $50 and $100 gift certificates," said David Donaway, head of the Florida Department of Law Enforcement Daytona Beach office.

The company did 70 to 80 percent of its business with government agencies, seeking out low-level employees who were authorized to buy cleaning products, befriending them and offering them gifts in exchange for costly purchases, Donaway said.

It concentrated on public workers because few private employers would pay such exorbitant prices, he said.

"Two rolls of what they call Wipe Outs that were basically paper towels cost $290," Donaway said.

When government workers had second thoughts and tried to return products, the company would refuse and threaten to play back tapes of the orders and the gift offers, Donaway said.

While no public workers were getting rich off the deals - gifts accepted by the nine employees charged ranged in value from $185 to $1,275 - many were being placed on leave or resigning for getting involved.

Dozens of other public employees around the state also did business with the company, but likely won't be charged because they only made one or two purchases and gifts were not as significant. The employees may be disciplined.

Clearwater park department workers were among those implicated.

Two Stone Cold officials and the company's founder made first appearances in a Daytona Beach court Thursday.

Husband and wife owners Lloyd Barnard, 54, and Marilyn Meek, 51, of Ponce Inlet and founder Thomas Stone, 32, of Daytona Beach - who no longer is connected with the company - are each charged with racketeering, conspiracy to commit racketeering, 21 counts of unlawful compensation and 22 counts of telemarketing without a license. They face up to 30 years in jail.

According to the company Web site, Stone Cold Chemicals was formed in 1996 after a group of friends found that a concert promoting business they began was not paying off.

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