DoJ finds bowling for contractors more lucrative than bowling for dollars
Looks like the long arm of the law is finally reaching out and bitch slapping some of the contracting cronies and culprits who believe the law does not apply to them. All I have to say is, “IT’S ABOUT TIME!”
The Department of Justice (DoJ) seems to be getting serious about enforcing the Foreign Corrupt Practices Act (FCPA). Last year’s record breaking settlement with Halliburton and KBR to the tune of $579 million appears to have been only the beginning. Last week the DoJ unsealed indictments against 22 high ranking individuals working for undisclosed (in the indictments) Defense contractors and then followed up with an indictment for one of their very own undercover operatives, Richard Bistrong, who helped them sting the first 22 alleged wrong doers.
So far it seems to be only the minor players in the goverment contracting lottery (KBR and former KBR CEO Albert “Jack” Stanley were convicted for bribing government officials in Nigeria unrelated to LOGCAP) are being indicted and charged. If I were one of the “Big Names” in the contracting game in Iraq and Afghanistan, I would probably be looking over my shoulder about now. But then again I have a conscience, a soul and can see my reflection in a mirror. The DoJ has only unsealed the indictments on individuals. As of yet, no companies have been named. According to the press release the investigation is ongoing and I can’t wait for the other shoe to drop on this one.
Following are some of the indictments, convictions and note worthy news that has happened during the last week:
Supplier Accused of Bribes for U.N. Contracts
By DIANA B. HENRIQUES
January 23, 2010
Last year, according to people briefed on the case, a Florida businessman went undercover to play the part of a corrupt sales executive in a foreign bribery sting that led to nearly two dozen arrests and 16 indictments announced earlier this week.
On Friday, the executive was accused by prosecutors of playing the same role in real life — paying bribes from 2001 to 2006 to get contracts to supply helmets, armored vests, pepper spray and other protective gear to United Nations peacekeeping forces and a Dutch law enforcement agency. The accusations in the new case were made in documents filed by the Justice Department in Federal District Court in Washington. The defendant is Richard T. Bistrong, identified in the court record as a former vice president for international sales at a military and law enforcement equipment manufacturer in Jacksonville, Fla. (Click HERE to read full article)
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Man convicted of selling fake computer parts to Marines
By MARY FLOOD HOUSTON CHRONICLE
Jan. 22, 2010, 6:57PM
A Sugar Land man was found guilty Friday of selling counterfeit computer parts to the U.S. Marine Corps for use in Iraq.
A jury in Senior U.S. District Judge David Hittner’s court found that Ehab Ashoor trafficked in counterfeit Cisco computer products. He provided the Marines with 200 fake Cisco gigabit interface converters — hardware that allows computers to communicate with one another – and that were to be used in connection with Iraq operations. (Click HERE to read full article)
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Assets of Suspended Pa. Navy Contractor Sold
PITTSBURGH January 22, 2010 (AP)
Assets of western Pa. company suspended from bidding on Navy contracts sold to Canadian firm.
The assets of a western Pennsylvania Navy defense contractor that was suspended from accepting government contracts have been sold to a Canadian firm for $24 million.
API Technologies Corp. of Toronto says it is buying the assets of Kuchera Defense Systems Inc., of Windber, and will maintain and expand the 300-employee operation near Johnstown. (Click HERE to read the full article)
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POGO (Mostly) Identifies Companies Stung in Foreign Corruption Investigation
Neil Gordon – Jan 21, 2010
This week brought big news in the world of contractor misconduct: a federal sting operation nabbed a total of 22 defense contractor executives and employees for violations of the Foreign Corrupt Practices Act (FCPA). The 22 individuals were arrested this week and charged with paying bribes to an undercover FBI agent posing as an African defense ministry official looking to award a $15 million military and law enforcement equipment supply contract. The Department of Justice (DOJ) is calling it the single largest prosecution in the history of its enforcement of the FCPA, which prohibits individual and companies from bribing foreign government officials for the purpose of obtaining or retaining business. (Click HERE to read full article)
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Contractor jailed for weapons fraud
By The Mainebiz News Staff 01/18/10
A defense contractor in Biddeford has been sentenced to eight years in prison for defrauding the U.S. Department of Defense out of millions of dollars.
Maurice Subilia Jr., once the president of missile parts manufacturer Fiber Materials Inc., was also ordered to pay $9.2 million in restitution, the total amount the government lost as a result of Subilia’s actions, according to the Portland Press Herald. Subilia last year pleaded guilty to conspiracy, money laundering and bribery of public officials for his involvement in a scam of the Army’s Space and Missile Defense Command. From 2000 to 2007, Subilia paid $1.2 million in bribes to two Army officials in return for more than $10 million in subcontracts awarded to companies Subilia controlled, which then supplied the military with subpar materials. (Click HERE to read full article)
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Former U.S. Army Officer Sentenced to 42 Months in Prison for Bribery and Weapons Conspiracy
Friday, January 22, 2010
Michael Wheeler, a former lieutenant colonel in the U.S. Army Reserves, was sentenced late yesterday to 42 months in prison for his participation in a wide-ranging bribery conspiracy involving the U.S. government, the Republic of Iraq and the Coalition Provisional Authority – South Central Region (CPA-SC) in Al-Hillah, Iraq, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. Wheeler was also sentenced by U.S. District Court Judge Mary L. Cooper for the District of New Jersey – Trenton Division to serve three years of supervised release following his prison term and to pay $1,200 in restitution. (Click HERE to read full article)
Other Related Posts From Ms Sparky
- State Dept. IG Finds Waste and Mismanagement on Afghanistan Contract
- Jury finds Nicholas Bickle, Navy SEAL, guilty of weapons smuggling
- Unscrupulous contractors feasting on tax dollars & other news
- US-IRAQ: Lucrative KBR Contracts Unaffected by Troop Drawdown
- Army awards lucrative Iraq support contract to KBR
Thursday, July 8th 2010 at 3:06 am |
Here is an update on the FCPA settlements related to Albert “Jack” Stanley and the Nigerian bribery investigation.
“…Including today’s fine, the government has netted more than $1.28 billion from companies involved in the scheme. The SEC’s portion of the settlements include around $400 million in disgorgements — the largest combined disgorgement from an FCPA violation to date.
Today’s complaints, filed in federal court in Houston, paint a picture of the massive scheme that spanned continents and included cars filled with cash…”