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Former Army colonel pleads guilty to role in Fort Gordon fraud, kickback scheme

March 28, 2019 By Nancy Cleveland

A former active-duty U.S. Army colonel has pled guilty to accepting bribes in return for helping steer military contracts to a business fraudulently claiming status as a small business.

Anthony R. Williams of Vienna, VA, pled guilty to Conspiracy to Commit Bribery and felony conflict of interest in U.S. District Court, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.

Williams faces a sentence of up to five years in prison, and has agreed to forfeit more than $1.2 million in proceeds derived from the scheme.

According to court documents and evidence entered during court proceedings, Williams, while serving as a colonel in the U.S. Army, accepted bribes to steer federal procurement contracts to the CREC Group, a company owned by Calvin Devear Lawyer, a retired U.S. Army colonel. The CREC Group had received Small Business Administration (SBA) status as a small, disadvantaged business based on false representations from Lawyer and from Dwayne Oswald Fulton, then an employee of a defense contractor.

Lawyer previously pled guilty in the case and is serving a 60-month prison sentence, while co-conspirator, Anthony Roper, a former active duty U.S. Army colonel at Fort Gordon, also pled guilty and is serving a 60-month sentence.

The cases were investigated by the United States Army Criminal Investigations Division (CID), the Defense Criminal Investigative Service (DCIS), the Small Business Administration’s Office of Inspector General, and the United States Attorney’s Office.

Source: https://www.justice.gov/usao-sdga/pr/former-army-colonel-pleads-guilty-role-fort-gordon-fraud-kickback-scheme

Filed Under: Contracting News Tagged With: abuse, bribery, conspiracy, conspiracy to commit bribery, DOJ, false representation, Fort Gordon, fraud, Ft. Gordon, kickback, SBA, small business, small disadvantaged business

Atlanta businessman indicted on 51 counts including bribery, tax evasion, and money laundering

March 7, 2019 By Nancy Cleveland

City of Atlanta contractor Lohrasb “Jeff” Jafari has been charged in a 51 count federal indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring.

“Jeff Jafari allegedly paid multiple bribes to two local officials over a period of years and then attempted to obstruct the federal investigation into his misconduct,” said U.S. Attorney Byung J. “BJay” Pak. “He also failed to pay income taxes on millions of dollars he earned from city contracts.  Instead, he used the funds to live a lavish lifestyle.  Whether you bribe, take a bribe, or otherwise misuse the public’s money to enrich yourself – it’s all corruption. We will vigorously pursue any such cases.”

According to U.S. Attorney Pak, the charges, and other information presented in court on March 6, 2019:

  • Beginning at least in 2014 to January 2017, Jafari allegedly paid thousands of dollars in bribe payments to Adam Smith, the then-Chief Procurement Officer of the City of Atlanta.
  • At the time, Jafari was the Executive Vice-President of PRAD Group and did millions of dollars in work with the City of Atlanta, primarily under the City’s Architectural and Engineering contracts.
  • Jafari and Smith met at Atlanta-area restaurants where they discussed City business, among other things, and Jafari would generally pay Smith $1,000 in cash in the restaurant bathroom.
  • Jafari similarly paid bribes to a local official in DeKalb County in April and August of 2014.

According to the U.S. Attorney’s office, in exchange for Jafari’s payments to Smith, Smith provided Jafari with information and counsel regarding the City of Atlanta’s procurement processes, among other information. When PRAD Group or a joint venture in which PRAD Group was a partner became a successful proponent on a City of Atlanta contract or Request for Proposal, Smith approved and submitted the award of those projects. Smith also approved task and/or purchase orders for those projects.

In February 2017, Jafari became aware of the federal investigation into his payments to Smith, at which time he confronted Smith in an effort to intimidate and persuade Smith to provide false information to federal law enforcement about the payments, instructing Smith to deny taking bribe money from Jafari.

Between 2014 through 2016, Jafari also willfully failed to pay income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used corporate funds for personal expenses, among other things, to avoid the assessment of income tax. In 2014, Jafari owed at least $150,000; in 2015, at least $300,000; and in 2017, at least $700,000 to the IRS. Jafari is additionally charged with numerous counts of money laundering for engaging in financial transactions with funds earned from City of Atlanta work he obtained while he was paying bribes to Adam Smith.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.  This case is being investigated by the FBI and IRS Criminal Investigation.

Source: https://www.justice.gov/usao-ndga/pr/lohrasb-jeff-jafari-indicted-51-counts-including-bribery-tax-evasion-and-money

See federal indictment here: Jeff Jafari-Indictment-03.06.2019

See September 28, 2017 article about guilty plea by City of Atlanta purchasing chief here: https://gtpac.org/2017/09/28/city-purchasing-head-pleads-guilty-to-conspiracy-charge

Filed Under: Contracting News Tagged With: abuse, bribe, bribery, City of Atlanta, conspiracy, corruption, DOJ, Justice Dept., money laundering, pay-to-play, PRAD Group, state and local government, tax evasion, U.S. Attorney, witness tampering

Judge imposes maximum sentences in Fort Gordon bid-rigging conspiracy

May 28, 2018 By Nancy Cleveland

Two men who took part in a bid-rigging and bribery scheme involving $54 million in contracts at Fort Gordon received the maximum prison terms of five years last Wednesday despite the recommendation from the U.S. Attorney’s office for a reduction in their sentence.

Calvin Lawyer, 60, and Dwayne O. Fulton, 59, admitted in November to their roles in the conspiracy that ran from 2008, when Lawyer retired as a full colonel and started his own business called Communications Research Engineering and Consultant Group with the goal of obtaining government contracts. But Lawyer didn’t need to compete with other contractors because he paid bribes to ensure he got no-bid contracts from his former subordinate Col. Anthony Roper.

After learning they were under investigation in 2016, Lawyer, Roper and his wife, Audra Roper, and Fulton, who worked for the large defense contractor Kratos Defense & Security Solutions inc., fabricated documents to try to cover their tracks.

Keep reading this article at: http://www.augustachronicle.com/news/20180523/judge-imposes-maximum-sentences-in-fort-gordon-bid-rigging-conspiracy

Read earlier posts about this case here:

  • Former Army officer charged with bribery and fraud in connection with Ft. Gordon contracts

  • $20 million bribery, fraud indictment returned against military personnel at Fort Gordon

Filed Under: Contracting News Tagged With: abuse, Army, bid rigging, bribery, conspiracy, false statement, Fort Gordon, fraud, indictment, kick-back, no bid, obstruction

U.S. Attorney for Southern District of GA announces results of recent procurement fraud prosecutions

May 7, 2018 By Nancy Cleveland

As part of a new emphasis on procurement fraud enforcement within the Southern District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia has announced the results of a series of recent procurement fraud prosecutions.

Over the past several months, the strike force’s efforts resulted in five guilty pleas and twelve civil settlements, including the following publically available actions:

  1. United States of America v. Dwayne Fulton (1:17-CR-35)
  2. United States of America v. Calvin Lawyer (1:17-CR-35)
  3. United States of America v. Anthony Roper (1:17-CR-35)
  4. United States of America v. Audra Roper (1:17-CR-35)
  5. United States ex rel. Major Contracting Services, Inc. v. Military Training Solutions, LLC and ADCO Holdings, Inc., et al. (4:16-cv-115)
  6. United States of America v. Robert Obradovich (4:18-CR-47)

These prosecutions and civil settlements with the named individuals and entities, as well as others, stemmed from a wide variety of fraudulent conduct, including bribery of public officials, illegal kickbacks, illegal arrangements between large contracting companies and certified small or 8(a) businesses acting as “front” companies, and billing for services not rendered.  Each of the individuals who has pled guilty awaits sentencing.  The total financial recovery for the United States thus far has exceeded $7.4 million.  Several of these investigations remain ongoing.

“The Southern District of Georgia is the proud home of several major military installations that serve a vital role both in our national defense and the district’s local economy,” said United States Attorney Bobby L. Christine.  “Those who do business with these installations should be on notice – ripping off the United States will not be tolerated! This office will bring to bear the full weight of our resources to hold fraudsters accountable.”

The joint strike force that led to these convictions and settlements involved agents, investigators, and auditors from the Department of Justice, Defense Criminal Investigative Service, Army Criminal Investigation Command (Major Procurement Fraud Unit), Naval Criminal Investigative Service, the Small Business Administration Office of Inspector General.  Significant and critical assistance was also provided by civilian and military personnel from the Army, Navy, and Air Force stationed at affected military installations.

“The American public expects the Department of Defense (DoD) to spend limited taxpayer funds efficiently and economically.  Bribery and other corrupt behavior by public officials and defense contractors diverts and wastes precious dollars intended to provide critical products and services for our Warfighters.  These results demonstrate the effectiveness of investigative efforts by the Defense Criminal Investigative Service to protect the integrity of all DoD programs,” said Special Agent in Charge John F. Khin, Southeast Field Office.

“These settlements stand as proof of the tenacity of our special agents,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “It is important for those who conspired to profit from illegal payments take responsibility for their actions. The settlements hold the defendants accountable and send a message to others that these violations will be taken seriously.”

“Our partnership with the joint procurement fraud strike force ensures fair and open competition for U.S. Government contracts which support the training and readiness of Marine Corps personnel,” said H. Andrew Goodridge, Special Agent in Charge, NCIS Carolinas Field Office.

“SBA OIG will aggressively investigate allegations of fraud involving SBA’s preferential contracting programs, to include false statements made to gain access to contracting opportunities set aside for small businesses,” said SBA OIG Eastern Region Special Agent-in-Charge Kevin Kupperbusch.  “SBA’s preferential contracting programs are intended to promote the economy and grow and develop small businesses across the nation.  I want to thank the U.S Attorney’s Office and our law enforcement partners for their dedication and hard work throughout these investigations.”

SBA’s General Counsel, Christopher Pilkerton said, “These successful prosecutions demonstrate the tremendous results achieved through the combined efforts of federal agencies to uncover and forcefully respond to procurement fraud.  SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs.”

The United States was represented by Assistant United States Attorneys Brian T. Rafferty, Shannon H. Statkus, J. Thomas Clarkson, Matthew A. Josephson, and Jonathan A. Porter.  Any claims resolved by the civil settlement agreements are allegations only and there has been no determination of liability.

Each of the civil settlements resolved potential liability under the False Claims Act.  Under the False Claims Act, whistleblowers can be entitled to a portion of the amount recovered by the United States.  The United States Attorney’s Office also reminds contractors that businesses and individuals that self-disclose potential violations can be eligible for significantly reduced penalties.

If you have any information regarding potential procurement fraud, please contact Assistant United States Attorney J. Thomas Clarkson at (912) 201-2601.

Source: https://www.justice.gov/usao-sdga/pr/southern-district-georgia-announces-results-recent-criminal-and-civil-procurement-fraud

Filed Under: Contracting News Tagged With: 8(a), abuse, Army, bid rigging, bribery, conspiracy, DCIS, DoD, DOJ, false claim, false claims, False Claims Act, false statement, Fort Gordon, fraud, indictment, Justice Dept., kick-back, NCIS, obstruction, SBA

Former Army officer charged with bribery and fraud in connection with Ft. Gordon contracts

October 5, 2017 By Nancy Cleveland

A retired Army colonel whose business company reportedly was used to commit bribery to obtain more than $20 million in government contracts has been charged with conspiracy.

A conspiracy charge was lodged Monday, Oct. 2, 2017 in U.S. District Court against Calvin Devear Lawyer that charges him with conspiracy, a crime punishable by up to five years.

According to court documents, Lawyer set up a company named Communications, Research, Engineering and Consultant Group before he retired from the Army after 20 years in February 2008. The purpose of the company was to try to win contracts with the U.S. government and private contractors.

But the company was used to bribe those responsible for awarding contracts and bid-rigging at Fort Gordon, according to the documents.

Keep reading this article at: http://chronicle.augusta.com/news/2017-10-03/former-army-officer-charged-conspiracy-bribe-and-commit-fraud-government-contracts

Filed Under: Contracting News Tagged With: abuse, Army, bid rigging, bribe, bribery, conspiracy, false statement, Fort Gordon, fraud, indictment, kick-back, obstruction

City purchasing head pleads guilty to conspiracy charge

September 28, 2017 By Nancy Cleveland

Adam L. Smith, the former Chief Procurement Officer for the City of Atlanta, has pleaded guilty to conspiring to accept more than $30,000 in bribe payments from a vendor who obtained millions of dollars in City contracts.

“Great trust was placed in Smith as Chief Procurement Officer for the City of Atlanta, and he abused his position to serve his own financial interests,” said U.S. Attorney John A. Horn.  “Public corruption offenses, like Smith’s, can erode the confidence that the people have in government.”

“The guilty plea of former City of Atlanta Procurement Officer Adams in federal court [on Sept. 26, 2017], will ensure that he is held accountable for his greed based criminal conduct as he now awaits sentencing. It is hoped that this case serves as notice to others that similar such conduct among public officials will not be condoned and that there are severe consequences should that notice go unheeded,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

“Public service is a public trust, requiring employees to obey laws and ethical principles above private gain.  Smith abused his public trust to enrich himself at a cost to the taxpayers,” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “We will continue to work with the FBI and U.S. Attorney’s Office in making these public corruption investigations a priority.”

According to U.S. Attorney Horn, the charges and other information presented in court, Smith served as the Chief Procurement Officer for the City of Atlanta from 2003 to February 21, 2017, overseeing the City’s purchasing activities and its expenditure of billions of dollars in public money for projects.

The conspiracy charge filed by Horn’s office refers to a “vendor” represented by an executive with a construction firm in Atlanta, but does not identify either the vendor or the executive by name.  During Smith’s tenure as the Chief Procurement Officer for the City, he awarded contracts worth millions of dollars to the vendor’s firm and joint venture projects of which the vendor was a partner.

From at least 2015 to January 2017, Smith met privately with the vendor on multiple occasions, frequently at local restaurants. During these meetings, Smith and the vendor discussed Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, the vendor was actively seeking contracts, projects, and work with Atlanta.

After most of these meetings, the vendor and Smith met in the restaurant’s bathroom, where the vendor paid Smith approximately $1,000 in cash.  In return for the bribe payments, the vendor expected Smith to use his position and power as Atlanta’s Chief Procurement Officer to assist the vendor with contracting/procurement with Atlanta and to furnish the vendor with future benefits and favors when needed.

Given his position, Smith was required to sign annually a financial disclosure statement certifying that he had not received more than $5,000 in annual income from any corporation, partnership, proprietorship, or other business entity other than Atlanta.  Additionally, under Atlanta’s Procurement Code, Smith also had to “make a written determination as to the existence” of any “personal or organizational conflicts of interest exist” between vendors and Atlanta before awarding a vendor a solicited contract. Similarly, Atlanta’s Procurement Code mandated that Smith “certify to the City Council” that the winning vendors had disclosed to Atlanta any “organizational and personal relationships” and that the “award of the contract [was] appropriate.”

Furthermore, in exchange for those cash payments:

  1. Smith met with the vendor on a regular basis;
  2. Smith provided the vendor with information and counsel regarding Atlanta’s procurement processes (among other information);
  3. When the vendor’s firm or joint venture became the successful bidder on an Atlanta contract or request for proposal, Smith approved and submitted the award of such procurement projects or bids to Atlanta’s mayor and City Council for final authorization;
  4. Smith never disclosed his ongoing financial relationship with the vendor and/or the vendor’s firm on his Financial Disclosure Statements to Atlanta; and
  5. Smith never advised Atlanta’s City Council that the vendor’s firm or joint venture had failed to disclose its organizational and personal relationships with him.

In total, from at least 2015 to January 2017, the vendor paid Smith more than $30,000 in cash.

Adam L. Smith, 53, pleaded guilty to conspiratorial bribery.  Sentencing is scheduled for Jan. 16, 2018, before U.S. District Judge Steve C. Jones.

The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating this case.

Source: https://www.justice.gov/usao-ndga/pr/city-atlanta-s-former-chief-procurement-officer-adam-smith-pleads-guilty-taking-bribes

See federal conspiracy charge here: Conspiracy Charge – Adam Smith – 09.26.2017

Filed Under: Contracting News Tagged With: abuse, bribe, bribery, City of Atlanta, conspiracy, corruption, pay-to-play, state and local government

DBE couple charged with bribery

September 15, 2017 By Nancy Cleveland

A federal indictment has been unsealed in Philadelphia, charging Nazik Modawi and her husband Abboud Wali with conspiracy and bribery.

According to allegations contained in the indictment, the defendants made two bribe payments in November through December 2016 to Southeastern Pennsylvania Transportation Authority (SEPTA) employees for the purpose of expediting their application for a certification from SEPTA’s disadvantaged business enterprise (DBE) program. SEPTA employees immediately reported the cash payments to authorities.

The charge of conspiracy carry a maximum sentence of 5 years in prison and a $250,000 fine; charges of bribery concerning agencies receiving federal funds carry a maximum sentence of 10 years in prison and a $250,000 fine.

An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

The case was investigated by the Federal Bureau of Investigation and the United States Department of Transportation, Office of Inspector General, with assistance from the SEPTA Inspector General. It is being prosecuted by Assistant United States Attorney Denise S. Wolf of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

Source: https://www.justice.gov/usao-edpa/pr/husband-and-wife-charged-bribery

Filed Under: Contracting News Tagged With: bribe, bribery, conspiracy, DBE, DOJ, FBI, fraud, Justice Dept., transit, USDOT

Contractor sentenced to prison for providing bribes in a contract fraud scheme

June 26, 2017 By Nancy Cleveland

Michael Allen Braun has been sentenced to 18 months in prison and $126,300 in restitution for “conspiracy to commit theft of honest services and wire fraud” and bribery of a public official.

In connection with the same case, co-conspirator Air Force Master Sergeant Cody Boone Covert was previously sentenced in February to 23 months in prison for conspiracy and bribery of a public official.

In January 2014, MSgt. Covert, 901st Aircraft Maintenance Squadron located at Hurlburt Field in Florida, was tasked by the Air Force with procuring specialized equipment in support of C-130 Special Operations Aircraft. Braun, who owned the company Trans Global Storage Solutions, conspired with Covert to obtain a contract from the Air Force. Prior to the solicitation of the contract, Braun agreed to provide Covert 45% of the profit from the contract proceeds, if Covert ensured that Trans Global won the contract. Covert submitted a request to purchase the specialized equipment. Because Covert was the requester of the equipment, he was chosen to evaluate each proposal for technical acceptance. Subsequently, Covert recommended the Trans Global proposal be accepted. After Trans Global was fraudulently awarded the $126,300 contract from the Air Force via Covert’s inside influence, Covert and Braun split the proceeds. Covert pled guilty on October 28, 2016, and Braun pled guilty on January 12, 2017.

“Corruption in the government procurement process damages the public trust and ultimately degrades the warfighting mission of the Department of Defense,” commented Special Agent-in-Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service. “DCIS, with our investigative partners and the U.S. Attorney’s Office, continues to pursue and bring to justice those contractors who defraud military programs, especially when it jeopardizes the safety of our brave men and women in uniform.”

The case was investigated by the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Defense Contract Audit Agency.

Source: https://www.justice.gov/usao-ndfl/pr/federal-government-contractor-sentenced-prison-providing-bribes-government-contract

Filed Under: Contracting News Tagged With: abuse, Air Force, bribe, bribery, conspiracy, convicttion, corruption, DCAA, DCIS, DOJ, fraud, Justice Dept., kick-back, kickback, theft

Fraud indictment returned in connection with technology sale to Bibb County school district

June 19, 2017 By Nancy Cleveland

The U.S. Attorney for the Middle District of Georgia has announced that an indictment charging Isaac J. Culver, III, age 47, Lizella, Georgia, Dave Carty, age 48, Macon, Georgia, and their business, Progressive Consulting Technologies, Inc., with conspiracy to commit wire and mail fraud, ten counts of wire fraud, one count of mail fraud, and conspiracy to launder the proceeds of unlawful activity was unsealed on June 14, 2017.

The charges against Culver, Carty, and Progressive Consulting Technologies, Inc. stem from the sale of 15,000 Ncomputing devices to the Bibb County School District in 2012.   Culver and Carty were arrested and made their initial appearances in the U.S. District Court on June 14th.  They were released on $15,000 bond for each man.

Each of the charges against Culver, Carty, and Progressive Consulting Technologies, Inc. carry a maximum possible sentence of 20 years imprisonment. The fine on the conspiracy to launder the proceeds of unlawful activity carries a maximum fine of $500,000.00 or twice the value of the property involved in the transaction, whichever is greater.  The other charges carry a maximum possible fine of $250,000.00 each.

The indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless proven guilty in a court of law.

This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service.

Copy of the indictment is here: Indictment 06.14.2017

Source: https://www.justice.gov/usao-mdga/pr/indictment-returned-fraud-connection-technology-sale-bibb-county-school-district

Filed Under: Contracting News Tagged With: abuse, conspiracy, DOJ, FBI, fraud, indictment, IRS, Justice Dept., waste

$20 million bribery, fraud indictment returned against military personnel at Fort Gordon

June 12, 2017 By Nancy Cleveland

An indictment returned by a federal grand jury accuses a Fort Gordon active-duty Army colonel, his wife and a former defense contractor employee of rigging bids to defraud the government of more than $20 million.

The indictment accuses Anthony Tyrone Roper, 55, Audra Roper, 49, and Dwayne Oswald Fulton, 58, of taking part in a bribery and kickback scheme from 2008. Col. Roper, his wife and others are accused of soliciting and accepting cash bribes in exchange for rigging the award of Army contracts.

The indictment further alleges that in an attempt to hide their bribery and fraud schemes, the Ropers and Fulton attempted to obstruct an official investigation into their criminal conduct.

Keep reading this article at: http://chronicle.augusta.com/news/2017-06-08/20-million-bribery-fraud-indictment-returned-against-military-personnel-fort-gordon

 

 

Filed Under: Contracting News Tagged With: abuse, Army, bid rigging, bribery, conspiracy, false statement, Fort Gordon, fraud, indictment, kick-back, obstruction

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