Spin Cycle

The City of New York
Department of Investigation
ROSE GILL HEARN
COMMISSIONER

80 MAIDEN LANE
Release #09-2008
NEW YORK, NY 10038
FRIDAY, FEBRUARY 8, 2008

DOI STATEMENT ON CONVICTIONS OF BUSINESS OWNER AND COMPANY OFFICIAL IN
BID-RIGGING SCHEME TO OBTAIN SURPLUS SECURITY ENTRANCE SYSTEMS

ALAN J. RISI and JOANNE RUSCILLO were convicted Thursday,
February 7, 2008, in Manhattan Criminal Court for their role in a
bid-rigging scheme during an auction of surplus City property. RISI, 60,
of Queens, is the Chief Executive Officer of Georal International, Ltd.
(Georal), of Whitestone, New York. RUSCILLO, 49, of Queens, is the
Director of Sales for Integrated Security Corp. (Integrated), which is
located at the same address in Whitestone, New York as Georal.

The convictions are the culmination of a DOI investigation. The
City conducted an auction on March 23, 2006 of 19 surplus security
entrance systems that were manufactured by Georal and sold in 2000 and
2001 to the New York City Department of Correction and Police Department
for almost $1 million. Both RISI, representing Georal, and RUSCILLO,
representing Integrated, bid on the doors. RISI and RUSCILLO also
signed bid documents affirming that their bids were made without any
understanding, agreement or connection with any person, firm or
corporation making a bid for the same personal property, and were in all
respects fair, and without collusion or fraud. Both RISI, on behalf of
Georal, and RUSCILLO, on behalf of Integrated, falsely affirmed that
this was true. Georal bid $10,000 and Integrated submitted a bid for
$35,000.

The investigation determined that, in fact, RISI and RUSCILLO
conspired to rig this bid. RUSCILLO used four money orders worth a
total of $3,500 for the required deposit of ten percent of
Integrated's bid of $35,000. The investigation found that the four
money orders were purchased on March 22, 2006 by RUSCILLO at a Queens
check cashing store with a Georal check that was signed by RISI. Later
that morning, RUSCILLO deposited the money orders with the City. The
investigation also found that RISI was the sole signatory of checking
accounts used by both Georal and Integrated.

RISI was convicted of two counts of Offering a False Instrument
for Filing in the First Degree, a class E felony, and is scheduled to be
sentenced on February 25, 2008. RUSCILLO was convicted of one count of
Offering a False Instrument for Filing in the Second Degree, a class A
misdemeanor, and is expected to be sentenced on March 20, 2008.

As a result of DOI's investigation, the City never awarded the bid
and Georal and Integrated never received the doors.

This is the second time that a DOI investigation has led to a
felony conviction of RISI. In 2004, RISI pleaded guilty to Grand
Larceny and paid a $50,000 fine for submitting phony invoices to the
City while performing maintenance on the entrance doors of City office
buildings and court buildings.

DOI Commissioner Rose Gill Hearn said, "This case demonstrates
that individuals who seek to steal from the taxpayers will be caught and
prosecuted. That lesson should be especially clear to Mr. Risi who has
learned that the criminal justice system is not a revolving door. These
convictions are the result of the hard work of DOI investigators and
prosecutors of the Manhattan District Attorney's office."

The investigation was conducted by DOI Analyst John F. Manning,
under the supervision of Associate Commissioner Robert Joyce.

The case was prosecuted by Assistant District Attorney Hope Korenstein,
under the direction of the Chief of the Public Integrity Bureau, Thomas
Wornom, of the Office of New York County District Attorney Robert M.
Morgenthau.

DOI is grateful for the assistance of Martha K. Hirst,
Commissioner of the New York City Department of Citywide Administrative
Services, and members of her staff.