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Kerry Khan & Lee Khan plead guilty in USACE bribery scandal

“Today the ringleader of the largest bribery and bid-steering scheme in the history of federal contracting accepted responsibility for his crimes,” said U.S. Attorney Machen. “For his shocking abuse of his position of power, Kerry Khan faces more than two decades in prison. The homes, cars, and jewelry he financed with bribes and kickbacks have now been returned to their rightful owner – the American taxpayer.
U.S. Attorney Ronald C. Machen

Second Former U.S. Army Corps of Engineers Manager Pleads Guilty in Alleged $30 Million Bribery and Kickback Scheme

Scam Involved Steering of Government Contracts; Official’s Son Also Pleads Guilty to Charges Today
(DoJ) – WASHINGTON – Kerry F. Khan, 54, a former program manager for the U.S. Army Corps of Engineers, pled guilty today to federal charges of bribery and conspiracy to commit money laundering in a scheme that allegedly involved more than $30 million in bribes and kickback payments and the planned steering of a government contract potentially worth $1 billion.

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Everything including Saddam’s loo & other news

Dear Committee: Main Street Says Look at Pensions
Gretchen Morgenson – (New York Times) – November 12, 2011 – The so-called supercommittee in Congress has until Nov. 23 to find more than a trillion dollars of new savings in the federal budget.

Here’s one idea: Stop reimbursing the costs of pensions and other retirement benefits at huge, and hugely profitable, defense contractors. Over 10 years, such a move could save an estimated $30 billion — the amount by which these pensions are collectively underfunded. (That figure could change, depending on pension performance.)

True, that might seem like a drop in the bucket, given that the committee’s 12 members are trying to save $1.2 trillion over all. But examining this longstanding practice seems worthy in lean times.

The government also promises to help defense companies shore up their pension funds when they become underfunded. Many of these funds have lost money in recent years in declining financial markets or on bad investments, so the bill for taxpayers has been growing.

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Eyak & Army Corps of Engineers employees arrested for bribery, contracting scam (Updated)

  • Click HERE to read the indictment (PDF)
  • Eyak was awarded new DoD contracts on September 14 and October 3, 2011:
    United States DoD contracts for September 14, 2011
    Eyak Technology, L.L.C., Dulles, Va., is being awarded an $8,903,000 firm-fixed-priced delivery order MU65 against an existing U.S. Army Corps of Engineers Technology for infrastructure, geospatial, and environmental requirements indefinite-delivery/indefinite-quantity contract (W912HZ-09-D-0003) for the procurement, kitting, marking, and integration of different varieties of kits for the Marine Air Ground Taskforce (MAGTF) Secondary Imagery Dissemination System (MSIDS). MSIDS provides the only self-contained, hand-held, ground-prospective imagery capability for MAGTF reconnaissance units. Work will be performed in Colorado Springs, Colo., and is expected to be completed by Sept. 13, 2012. Contract funds in the amount of $33,372 will expire at the end of the current fiscal year. The delivery order was not competed. Marine Corps Systems Command, Quantico, Va., is the contracting activity.

    United States DoD contracts for October 3, 2011
    Eyak Services, LLC, Falls Church, Va., was awarded a $9,099,274 firm-fixed-price contract. The award will provide for the support services for Field Force Engineering Command Control System Readiness Operations. Work will be performed in Washington, D.C.; Seoul, Korea; and Winchester, Va.; with an estimated completion date of Sept. 27, 2012. One bid was solicited, with one bid received. The Army Corps of Engineers, Vicksburg, Miss., is the contracting activity (W912HZ-11-C-0069).

    Two U.S. Army Corps of Engineers Employees and Two Others Indicted in $20 Million Bribery and Kickback Scheme Involving Government Contracts – Defendants Arrested Today as Authorities Seize Millions in Assets

    (DoJ) WASHINGTON – October 4, 2011 – Four Virginia men, including two longtime employees of the U.S. Army Corps of Engineers, were arrested today on charges stemming from an indictment that accuses them of taking part in a conspiracy involving more than $20 million in bribes and kickback payments and the planned steering of a $780 million government contract to a favored contractor.

    The arrests were announced by U.S. Attorney Ronald C. Machen Jr.; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); Jeannine A. Hammett, Acting Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI), and James K. Podolak, Director of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit.

    The defendants include Kerry F. Khan, 53, of Alexandria, Va.; his son, Lee A. Khan, 30, of Fairfax, Va.; Michael A. Alexander, 55, of Woodbridge, Va., and Harold F. Babb, 60, of Sterling, Va. Kerry Khan and Alexander are employed by the U.S. Army Corps of Engineers, and Babb is director of contracts for a company that did business with the government.

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