Home » Indictments, Convictions & Arrests » Civilian Contractors » Former USACE program manager Michael A. Alexander & contractor plead guilty to kickback scheme
 

Former USACE program manager Michael A. Alexander & contractor plead guilty to kickback scheme

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All told, Alexander admitted receiving directly and indirectly about $1,150,000 of money and things of value from Nova Datacom and Cho. This included nearly $300,000 in checks and cash; $750,000 in wire transfers to an associate of Alexander’s in South Korea for the purchase of, among other things, a coffee shop called Seven Monkeys in Seoul; about $27,000 for the purchase of two designer watches for a member of Alexander’s family; employment of a family member at Nova Datacom, and other miscellaneous payments. Cho also promised Alexander future employment at Nova Datacom and $320,000 in additional payments. Indeed, on the morning of October 4, 2011, the date of his arrest, Alexander was expecting Cho to deliver a $20,000 payment to him.

In addition to these activities involving the TIGER contract, according to the statement of offense, Khan, Alexander, Babb and Cho agreed to steer the award of the CORES contract to Nova Datacom. This scheme was thwarted by the arrests of Alexander and others last fall.

Khan, 54, formerly of Alexandria, Va., Khan’s son, Lee Khan, 31, formerly of Fairfax, Va., and Babb, 60, formerly of Sterling, Va., were indicted along with Alexander on one count of conspiracy to commit bribery and wire fraud and aiding and abetting and causing an illegal act to be done, as well as one count of conspiracy to commit money laundering. Khan and Alexander also were indicted on one count of receipt of a bribe by a public official, and Babb was indicted on one count of unlawful kickbacks. Khan, Khan’s son, and Babb have pleaded not guilty to all charges in the case and are awaiting trial. Khan, Lee Khan, Babb, and Alexander have been in custody since their arrests in October.

Cho, 40, of Great Falls, Va., pled guilty in September 2011 to one count of conspiracy to commit bribery, money laundering, and wire fraud, and to defraud the United States, and one count of bribery. Another former Nova Datacom employee, Theodoros Hallas, 40, of Potomac, Md., the company’s former Executive Vice President, pled guilty to one count of conspiracy to commit wire fraud in October 2011. No sentencing date has been set for Cho or Hallas.

As part of his guilty plea today, McKinney signed a separate statement of offense that admitted that Alpha Technology had submitted fictitious and fraudulently inflated invoices that led to more than $1.8 million of payments to the firm. Some materials and services were provided, but, McKinney admitted, more than $850,000 of the expenses were fraudulent. Of this, he said, Alpha Technology kept about $245,395, and the rest allegedly was passed on to Khan directly and through a company controlled by another one of Khan’s family members.

To date, the United States has seized for forfeiture or recovered approximately $7.2 million in bank account funds, cash, and repayments, 16 real properties, five luxury cars, and multiple pieces of fine jewelry.

In announcing today’s developments, U.S. Attorney Machen, Assistant Director McJunkin, Inspector General Gustafson, Special Agent in Charge Craig, Acting Special Agent in Charge Hylton, and Director Podolak thanked those who investigated the case from the FBI’s Washington Field Office; the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency; the Washington Field Office of the Internal Revenue Service-Criminal Investigation; and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.

They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson and Bryan Seeley of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section. Finally, they expressed thanks for assistance provided by former Special Assistant U.S. Attorney Christopher Dana; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Shanna Hays, Taryn McLaughlin, Sarah Reis, Christopher Samson, and Nicole Wattelet, and Legal Assistants Jared Forney and Krishawn Graham. (Click HERE for original article)

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4 Comments

  1. Comment by ACC WATCH:

    GEEZ – the ARMY again. Surprise surprise. Even the most corrupt congressman would be getting tired of the Army by now. Unless the Congress just don’t want to reform the contracting system and take away all Congressional issued SF1402s from Army contracting officers. Is our Congress stupid ? It seems so.

  2. Comment by FBI WATCH:

    “Bribery and kickbacks have no place in government contracting,” said Assistant Director in Charge McJunkin. “The FBI and our partner agencies will continue to pursue those who engage in such criminal activity, as we work to protect federal funds and American taxpayers. We ask anyone with information about government fraud to contact the FBI.”

    Sorry, the FBI are ineffective and are deleting tips from their National Procurement Fraud Unit email tip address – UNREAD and no action.

    They are damn slow and allow a whole generation to spawn > develop > and reproduce > and pass on to their young ( the newbies ) and the corrpution is not stamped out.

    Camp Arifjan, Kuwait is a classic example of a spawning ground for corruption under Colonel Roger ( Procurement what ) something about Procurement Integrity, the rules designed to counter Daddy Army Major John Cockerham and Daddy Army Major Pressley. The corruption just carries on. There are no solicitations conducted cleanly and ACC should request that their command be dismantled and turn it over to the GAO.

  3. Comment by SBA WATCH:

    “Today’s announcement demonstrates the resolve of law enforcement to aggressively identify and prosecute individuals considering defrauding the federal government by deceit and bribery,” said SBA Inspector General Gustafson. “There are severe consequences associated with this form of criminal conduct, as this case uniquely demonstrates. The SBA OIG will relentlessly pursue fraud in government contracting programs to eliminate corruption, promote fair competition, and serve the American taxpayer.”

    Another total lie. This is the first time they have even showed up at a press conference.

    In Kuwait – EVERY and I mean EVERY Prime contractor does not have a SUBCONTRACTOR PLAN where American SMALL BUSINESS can count on the 45% subcontracted dollars coming to them. No those dollars go the the Lebanese and Kuwait owned businesses that are willing to pay kickbacks and bribes THAT IS THE CAMP ARIFJAN SUBCONTRACTING PROGRAM. GDIT do not have a subcontracting plan, but their program manager will give subcontracts to whoever. GDIT doesn’t even know what a subcontracting plan is and their contracting officer is about to get a lesson in fair and equal treatment of subcontractors.

  4. Comment by Ziad:

    all usace PM corrupted now they have pm named anwar mudher she took 65,000$ from us when she was a PE on our project at VBC so we can close the contract because it had some wrong design

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