Tarzana Businessman Convicted of Federal Gratuity Scheme

A Tarzana man who operated two businesses that sold office supplies to the federal government has been convicted by a federal jury of giving illegal gifts to federal employees who did business with his companies.

Ivan Greenhut, 57, operated two companies – Modern Data Products, which operated out of Canoga Park, and Modern Imaging Solutions, based out of the Philippines. Greenhut was part of scheme to pay gratuities to government contracting officers who purchased supplies from his companies. “These gifts included electronics, such as laptop computers, digital cameras, iPads, iPods and gift certificates, worth hundreds of dollars, to retailers such as Amazon, Safeway, Target, and Best Buy,” according to court documents. “Many of these gifts were sent to the government official’s personal residence or personal email addresses.”

A witness testified that Greenhut knew that federal buyers could not accept gifts and that he was asked to stop. Greenhut also knew that the gifts could get him “in criminal trouble,” according to instant message communications shown to the jury. Greenhut refused to stop giving the gifts, however, because the gifts brought him “far too much business.”

“The public is entitled to impartial purchasing decisions by federal employees,” said United States Attorney Eileen M. Decker. “Mr. Greenhut’s illegal gift scheme cast doubt upon every purchase from his companies, thereby violating the public’s trust and confidence in its government. That scheme now has him facing a significant federal prison sentence.”

Greenhut is scheduled for sentencing on March 21, 2016. He faces a maximum penalty of seven years in federal prison.