Ex-employee of Mint pleads guilty to channeling business to supplier he knew

An Upper Darby man who worked at the U.S. Mint pleaded guilty yesterday to steering business to a Bucks County company he worked for on the side and whose president gave him money and gifts.

Michael Walker, 51, pleaded guilty in federal court to fraud, conflict of interest and related offenses. U.S. District Judge Legrome Davis set sentencing for May 26.

Authorities said that between January 2001 and March 2006, Walker got the Mint to buy more than $893,000 worth of supplies from Bucks County's KLH Enterprises and its predecessor. (The defense disputes the $893,000 figure.)

Walker's job at the Mint included monitoring supply inventories and ordering replacement products when necessary.

KLH sold supplies to the Mint, including ink and toner cartridges, waste baskets, cleaning solutions and paper, among other things.

Walker worked for KLH in 2005 and received $2,742 in checks from KLH for marketing work, and gifts from its owner, Kevin Hailey, who was a longtime friend and former colleague of Walker's at the Mint.

Court papers said that in 2004 Hailey took Walker as his guest to a charity event hosted by Baltimore Ravens linebacker Ray Lewis for which Hailey paid more than $1,000 for a dinner table.

Hailey also picked up the tab for Walker's airfare and hotel room in Houston during the 2006 NBA All-Star weekend.

Hailey, who was not charged with any wrongdoing, testified before the grand jury in May 2009 and had been on the government's witness list to testify against Walker had the case gone to trial.

Walker tried to hide his relationship with KLH and the checks and gifts he received, prosecutors said, by not reporting it on government disclosure forms.

Walker was suspended without pay from the Mint after being charged in July 2009.