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Indictments in Chicago Garbage Probe

CHICAGO (CN) - The president and vice president of a garbage cart repair company face federal charges of manipulating bids to win a contract with the City of Chicago, and failing to subcontract work to women and minority-run businesses as the city required.

Steven Fenzl and Douglas Ritter allegedly submitted multiple bids using different companies' names, and submitted falsified documents promising to subcontract with Women and Minority Business Enterprise companies.

The city claims that Fenzl and Ritter fraudulently accepted more than $1.7 million and failed to purchase $400,000 in goods and services from companies run by women or minorities.

They are charged with conspiracy, mail fraud and wire fraud.

Federal prosecutors called it "the first case to be brought in the department's ongoing antitrust investigation into the refuse cart repair industry."

Fenzl and Ritter face up to $250,000 per count and 20 years in jail if convicted.

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