The Wedtech scandal was an American political scandal involving the award of government contracts. It was first brought to light in 1986. History The Wedtech Corporation was founded in the Bronx, New York by John Mariotta, and originally manufactured baby carriages. But after a number of years, Mariotta brought in a partner, Fred Neuberger, and began focusing on winning small business set-aside contracts for the Department of Defense. As a major employer in a depressed part of New York City, Wedtech enjoyed a strong local reputation and was even praised by then U.S. President Ronald Reagan for the jobs it provided for those who might otherwise be forced onto welfare rolls. Mariotta was praised as the Small Business Owner of the Year by the U.S. Small Business Administration. Wedtech had won many of its defense contracts without competitive bidding under a Small Business Administration program that gave preference to minority-owned businesses, despite the fact that Fred Neuberger, not a member of any government recognized minority, owned a majority of the company's stock, thus disqualifying Wedtech as a minority-owned business. To keep Neuberger's controlling ownership secret, the company committed fraud, forging papers that claimed Mariotta was still the primary owner of the company. When Wedtech went public, it gave shares of stock to law firms (as payment for legal services), including Squadron, Ellenoff, Plesent & Sheinfeld. Some of the law firms employed members or relatives of members of the U.S. House of Representatives, including Bronx Congressmen Mario Biaggi and Robert Garcia. Both would later resign their seats due to their roles in the scandal and were subsequently jailed, as were State Senators Clarence Mitchell III and Michael Mitchell of Maryland. With undisclosed holdings in Wedtech, they used their positions to help Wedtech win federal work. Another key figure in the scandal was Paul Castellano's first cousin, Maj. General Vito Castellano who occupied key capitol positions in Albany, such as the former commander of the New York National Guard and Governor Mario Cuomo's former chief of staff. Vito Castellano pled guilty to state charges of tax evasion in connection with payments from the Wedtech Corporation. Indicted on charges of bribing Mr. Castellano was Bernard C. Ehrlich, who Castellano had promoted to commanding officer of the 42d Infantry Division of the National Guard. Wedtech then began extending its reach to the White House, utilizing President Reagan's press secretary, Lyn Nofziger, to contact public