Hauppauge computer distributor pleads guilty to bribing federal official to award contract

A Hauppauge computer equipment distributor pleaded guilty in federal court Wednesday to bribing an official in a federal laboratory for the U.S. Department of Energy.

Michael Montenes, 61, president of M.S. Hi-Tech, admitted, at his arraignment in U.S. District Court in Central Islip, to making $18,800 in payments to a procurement officer working for a Virginia lab to secure contracts to supply the facility with computer equipment.

Montenes also agreed to forfeit $969,000 for income earned through the contracts and pay $1.8 million in restitution related to damages and repairs incurred when electrical components he sold, which his attorney described as “not authentic,” caused a fire at the Thomas Jefferson National Accelerator Facility in Newport News.

“I was aware it was unlawful,” Montenes told U.S. Magistrate Judge Steven Tiscione of the bribes he admitted to paying.

Montenes, who waived his right to have his case heard by a grand jury, was charged with, and pleaded guilty to, a single count of bribery of a federal official.

The U.S. Attorney’s Office said the four payments ranged between $500 and $7,200 and occurred between December 2017 and December 2020. The fire broke out at the lab in July 2021, prosecutors said.

“Like the faulty components that he bribed a government official to purchase and caused damage to a Department of Energy laboratory, Montenes’ scheme has gone down in flames and he must now face the consequences for his crime,” U.S. Attorney Breon Peace said in a statement.

In a news release, the U.S. Attorney’s Office described the procurement officer as “co-conspirator 1,” but did not state whether that individual had yet been charged with a crime.

“Mr. Montenes has taken full responsibility for his bad judgment and will forever regret his actions,” said his attorney, Anthony La Pinta. “He will forge forward with the help of his family and friends to earn back the trust and respect of his peers that he worked so hard to achieve.”

Department of Energy Inspector General Teri Donaldson said in a statement that the agency will “ensure that there is no place in our supply chain for bribery and corrupt schemes.”

“Anyone who suspects such conduct is encouraged to report it immediately,” Donaldson said in a statement.

M.S. Hi-Tech was founded by Montenes in 1990, according to the company’s website. The business was honored in 2013 by the U.S. Small Business Administration as its subcontractor of the year after Montenes was nominated for the award by officials at Brookhaven National Laboratory, according to news reports at the time.

La Pinta said that while his client has sold equipment to Brookhaven National Laboratory, the bribes were related only to his client’s business dealings in Virginia.

M.S. Hi-Tech’s clients include 3M, Fuji Electronics and Samsung, according to its website. It deals primarily in electronic circuit components and memory chips.

Montenes is scheduled for sentencing Oct. 26. Assistant U.S. Attorney Bradley King estimated at his arraignment that Montenes is facing between 18 and 24 months in federal prison under advisory federal sentencing guidelines.

By Grant Parpan

grant.parpan@newsday.com@GrantParpan

Grant Parpan covers Suffolk County courts and federal courts for Newsday. A Long Island native, he joined Newsday in 2022.