OAKLAND – An East Bay father and son have admitted to diverting millions of dollars worth of Kaiser-owned medical equipment for use in their own company, federal prosecutors said.
Steven Montanelli, 63, and Anthony Montanelli, 34, both of San Ramon, pleaded guilty Friday to one count of conspiracy to commit mail fraud, the U.S. Attorney’s Office said in a news release. They face up to 20 years in prison and a $250,000 fine.
Prosecutors said the father and son admitted in a plea agreement that they worked as biomedical engineers at Kaiser and were responsible for repairing and servicing its ultrasound systems.
The defendants used their positions to order new parts, which they diverted to their San Jose-based business, Pacific Coast Imaging. They then sold the equipment for their own profit.
“The father and son also admitted operating their scheme and business, which they did not disclose to Kaiser, while being paid by Kaiser to service Kaiser-owned equipment,” prosecutors said.
Prosecutors said the scheme began in February 2010 and continued through about April 2018. The loss to Kaiser resulting from the conspiracy exceeded $1.5 million.
The defendants were charged with conspiracy to commit mail fraud on June 10, 2021.