Salesman gets probation in kickback scheme

A cleaning products salesman from Ambler was sentenced to three years probation today for paying $13,500 in illegal kickbacks to employees of SEPTA, the Philadelphia Housing Authority, the Veterans Administration, and the Naval Surface Warfare Center.

William Waterman, 68, a sales agent for the Illinois-based Drummond American Corp., pleaded guilty in May 2007 to four counts of mail fraud and aiding and abetting.

Waterman had been eligible for 18 to 24 months in prison under federal sentencing guidelines. But because he cooperated in the kickback probe, prosecutors yesterday asked for a lessened sentence.

Drummond set up "customer loyalty programs" providing gift certificates to the employees of its customers to reward them for buying their products.

SEPTA, the Philadelphia Housing Authority, the Veterans Administration and the Naval Surface Warfare Center all prohibit their employees from taking gifts or bribes.

Six SEPTA employees, two PHA employees, two VA employees, and three NSWC workers accepted multiple awards from Waterman, according to court papers.

Waterman now works for Share Corp., a Drummond competitor.

"I'm very sorry to have been involved in this scheme," Waterman told U.S. District Judge Berle M. Schiller, adding he paid out the kickbacks because he felt pressure from Drummond to increase sales by 10 percent each year.

Contact staff writer Sam Wood at 215-854-2796 or at samwood@phillynews.com.