Wednesday, September 12, 2012

Guilty Plea in $3.7 Million Federal Kickback Scheme

On September 7, 2012, a former federal employee with the U.S. Army Corps of Engineers in Iraq pleaded guilty in federal court to accepting $3.7 million in bribes and kickbacks from companies competing for reconstruction work in Iraq.  

Information and invoices:  In exchange for the money, the former employee used his position to "manipulate and influence the bidding, selection, award, and administration" of the contracts.  He supplied the firms with confidential information, modified invoices, and took kickbacks.   In one email to a contractor, he wrote:
"Attached is your price and my price is $40,000.  I'll take half when you sign the contract and the other half when you sign the first invoice."
Faces jail and fines:  Sentencing will be on January 8, 2013 and the former employee faces up to 35 years in prision and $750,000 in fines.

Additional information:
Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC

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