Georgia Tech Procurement Assistance Center

Judge imposes maximum sentences in Fort Gordon bid-rigging conspiracy

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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:

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

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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

Former City of Atlanta official indicted for bribery, money laundering, obstruction and tax fraud in connection with City contracts

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According to an April 5th statement released by the Office of the U.S. Attorney for the Northern District of Georgia, Mitzi Bickers has been arraigned on 11 federal charges including conspiring to commit bribery, wire fraud, money-laundering, federal obstruction and tax fraud.  Bickers was indicted by a federal grand jury on March 27, 2018.

“City of Atlanta contracts always should go to the most qualified bidder through a contracting process that is fair and transparent,” said U.S. Attorney Byung J. “BJay” Pak.  “Instead, Mitzi Bickers allegedly conspired to use her influence as a high-ranking City of Atlanta official and later as a connected political consultant to steer lucrative city contracts to Elvin R. Mitchell, Jr., Charles P. Richards, Jr., and their companies through bribery.  The illicit arrangement netted over $2 million in bribes for Bickers and almost $17 million in city contracts for Mitchell and Richards, and has shaken the public’s trust in the city’s contracting process.”

“The actions of Bickers, alleged in this indictment, traded the public’s trust in a fair bidding process for personal gain,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI and its partners in law enforcement will not tolerate those who choose to try to influence established and proper government procedures.”

“Public officials need to be reminded of the trust and duty bestowed upon them by the taxpayers to serve the public’s interest not their own,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation.  “When public officials and those seeking to do business with them break this trust by committing fraud, they will be charged to the fullest extent of the law.”

According to U.S. Attorney Pak, the charges, and other information presented in court on April 5th:

  • As the City of Atlanta’s Director of Human Services and after leaving employment with the city, Bickers allegedly conspired with contractors Elvin R. Mitchell, Jr. and Charles P. Richards, Jr. to accept bribe payments for herself and other public officials in exchange for the her agreement to obtain city contracts for Mitchell’s and Richards’ companies.  Both Mitchell and Richards have pleaded guilty to paying bribes to Bickers and are currently serving federal prison sentences for their crimes.
  • In 2009, Bickers worked on the mayoral campaign and began working for the City of Atlanta after the election.  From February 2010 to May 22, 2013, Bickers served as the City of Atlanta’s Director of Human Services.  Beginning in 2010, Mitchell and Richards agreed to pay bribes to Bickers to secure profitable City of Atlanta contracts for their businesses.  At times, the bribe payments allegedly were referred to as “up-front money.” In reality, Mitchell and Richards often paid Bickers when their companies actually received City of Atlanta contract work.
  • In exchange for the bribe payments, Bickers promised to represent Mitchell, Richards and their companies on matters relating to City of Atlanta contracting, even though she was a high-level city employee at the time.  Bickers also allegedly provided Mitchell and Richards with sensitive contracting information during the critical time when they were bidding on city contracts.  Between 2010 and 2013, Mitchell’s and Richard’s companies received multi-million dollar contracts with the city for snow removal, sidewalk repair and maintenance, and bridge reconstruction.
  • In effort to conceal her relationship with Mitchell and Richards, Bickers allegedly filed numerous false City of Atlanta Financial Disclosure Forms.  For example, in 2011, Bickers swore under penalty of perjury that she had no financial relationships with any outside businesses, even though Mitchell’s and Richards’ companies paid her over $650,000 in that year.  She used much of this money to purchase a $775,000 lakefront home in Jonesboro, Georgia, making a down payment of over a half million dollars.  In that same year, Bickers also allegedly claimed on her taxes that she made only $57,896 as a city employee, resulting in a $3,924 tax refund from the IRS.
  • In 2013, Bickers’ financial ties to the Pirouette Companies came to light and Bickers resigned her position with the City of Atlanta.  After her resignation, Bickers, Mitchell, and Richards allegedly continued the bribery scheme.  For example, Bickers helped Mitchell secure a multi-million dollar contract for snow and debris removal work after a snowstorm locked down Atlanta in 2014.  In turn, Mitchell paid Bickers and companies associated with her hundreds of thousands of dollars in bribes.  Bickers spent the proceeds of the bribery at stores like Gucci and on expensive vacations, home renovations, four Yamaha WaveRunners, a sports utility vehicle and an ATV.  Bickers is also charged with money laundering for purchasing an SUV and four WaveRunners with bribery proceeds from an account held by the Bickers Group, which was her political consulting company.

Ultimately, between 2010 and 2015, Mitchell and Richards allegedly paid Bickers and companies associated with her over $2 million in an attempt get City of Atlanta contracts through bribery.  In this same period, the City of Atlanta paid Mitchell’s and Richards’ businesses approximately $17 million for the government contracts they secured.

In September 2015, Mitchell began cooperating with FBI’s investigation into corruption at City Hall.  On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block  reading “ER, keep your mouth shut!” through a plate glass window in Mitchell’s home.  Bickers is alleged to have played a role in this attempt to obstruct the federal investigation.  Barnes will be sentenced by District Court Judge Steven C. Jones on April 9, 2018.

Mitzi Bickers, 51, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Russell G. Vineyard.  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 Internal Revenue Service Criminal Investigation.

First Assistant U.S. Attorney Kurt R. Erskine and Assistant U.S. Attorney Jeffrey W. Davis are prosecuting the case.

Source: https://www.justice.gov/usao-ndga/pr/former-city-atlanta-official-indicted-federal-bribery-money-laundering-obstruction-and

Man pleads guilty to obstructing justice in Atlanta contracting corruption investigation

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Shandarrick Barnes has pleaded guilty to obstructing justice in the federal corruption investigation involving City of Atlanta government.  The defendant threw a concrete block through the window of E.R. Mitchell’s home, and placed dead rodents on his porch and elsewhere hoping to thwart his cooperation with federal law enforcement.

“Barnes threw the concrete block through Mitchell’s dining room window to get him to ‘shut up,’” said U. S. Attorney Byung J. “BJay” Pak.  “Instead, that violent act made Mitchell even more resolute in his cooperation with federal law enforcement.  Barnes now faces a significant prison sentence because he decided to obstruct a federal investigation.”

“Attempts to subvert justice, whether through intimidation of witnesses or by any other means, will not be tolerated.  The FBI will expend any resources necessary to ensure that those who seek to obstruct criminal investigations are held accountable for their actions.  This plea by Shandarrick Barnes is evidence of the FBI’s commitment to protect those willing to cooperate with law enforcement’s efforts to improve their communities,”

“Individuals who obstruct justice will be held accountable for their actions. Intimidation of witnesses is never acceptable,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation.  “This investigation was complex and multifaceted, and it underscores the reason we are committed to working with our law enforcement partners to dismantle any and all public corruption schemes.”

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

  • In late July 2015, special agents with IRS and the FBI approached E.R. Mitchell for an interview relating to an ongoing investigation into corruption at the City of Atlanta.
  • During the meeting, agents discussed corruption allegations as well as potential tax improprieties.
  • Shortly after the IRS and FBI agents approached and interviewed him, Mitchell informed others that federal law enforcement had spoken with him and was asking questions.
  • Mitchell was interviewed on September 2, 2015, by the U.S. Attorney’s Office and FBI and IRS agents and confessed to regularly paying “up-front money” for City of Atlanta contracts.
  • On September 8, 2015, Mitchell returned to the office and completed a second debriefing with prosecutors and agents.
  • On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block with the words “ER, keep your mouth shut!” written on the side, through a plate glass window in Mitchell’s home.  When Mitchell emerged from the house to see who had thrown the block, he saw that dead rats had been placed on his porch, car and in his mailbox.  The police and FBI were summoned to the scene and law enforcement obtained security footage from the subdivision.  The video revealed a car that appeared to match Barnes’ vehicle left the area minutes after the block was thrown through the front window.  Further investigation by agents suggested that Barnes was involved.
  • On July 13 and August 17, 2016, Barnes was interviewed by the FBI and IRS.  During the interviews, he admitted he threw the concrete block through Mitchell’s window.  Barnes specifically acknowledged that he was aware of the IRS tax investigation into Mitchell and others and that agents had asked about Mitchell’s taxes as well as payments Mitchell made to businesses associated with Barnes’ employer.  He was well aware that Mitchell was actively cooperating with agents.  He said he was livid and his decision to throw the brick through Mitchell’s window was motivated by his desire to hinder Mitchell’s communication with agents concerning possible tax violations.  He said he felt that Mitchell’s communications to federal law enforcement would negatively affect his employer’s businesses.  Barnes was concerned that the communication with agents was detrimental to obtaining other business that he and others were actively seeking at that time.

Sentencing for Shandarrick Barnes, 41, of Atlanta, Georgia, is scheduled for February 7, 2018.  This case is being investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorneys Kurt R. Erskine and Jeffrey Davis are prosecuting the case.

Source: https://www.justice.gov/usao-ndga/pr/man-pleads-guilty-obstructing-justice-city-atlanta-corruption-investigation

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

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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

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

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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

 

 

Redstone Arsenal contracting officer to plead guilty to obstructing federal audit

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A Huntsville, AL woman employed by the U.S. Army Contracting Command at Redstone Arsenal has agreed to plead guilty to a charge of obstructing a federal audit, the U.S. Attorney’s Office in Birmingham said last week.

Redstone ArsenalTeresa Mayberry, 54, agreed to plead to one count of obstructing an audit in 2012 by the Department of Defense Inspector General’s office related to a federal contract for providing parts to Russian-made helicopters to be flown in Afghanistan.

The U.S. Attorney’s Office described the charge in a news release.

“Mayberry created a series of false documents that she provided to (the IG) to obstruct its 2012 audit of an Army contract to purchase parts for Russian-made Mi-17 helicopters.”

Keep reading this article at: http://www.al.com/news/huntsville/index.ssf/2015/06/redstone_arsenal_contract_offi.html

Read charges here: mayberry-charges

Read plea deal here: mayberry-plea

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