bribe | The Contracting Education Academy

October 21, 2019 By cs

The insidious threat of pay to play

The government contracting world is deeply vulnerable to fraud, says a former federal investigator.

News that a former FEMA administrator was arrested recently for taking bribes from a contractor — one who landed $1.8 billion in federal contracts to repair Puerto Rico’s electrical grid after Hurricane Maria — was hardly surprising to those of us who work in fraud risk management.

Why? Because, unfortunately, the government contracting world is deeply vulnerable to fraud. Given the huge amounts of money at stake and the power that federal officials have in deciding winners and losers among contractors, this dynamic can lead to a “pay to play” scenario among the less ethical on both sides of the contracting relationship.

The volume and similarity of government corruption cases are striking. In the most recent FEMA case, the contractor provided the government official with helicopter rides, hotel accommodations, first-class airfare, and the use of a credit card in exchange for choosing his company to repair Puerto Rico’s electrical grid. Last year, charges were brought against the defense contractors who allegedly provided Navy officials with gifts and luxury items that included cash, checks, retail gift cards and flat-screen televisions in return for $6 million in government contracts.

Keep reading this article at: https://www.govexec.com/management/2019/09/insidious-threat-pay-play/159935/

September 17, 2019 By cs

FEMA officials charged with bribery over Puerto Rico power contracts

A 15-count federal indictment accuses two former FEMA officials and a contractor with bribery, fraud and other offenses related to disaster relief efforts after Hurricane Maria devastated the island in 2017.

A former top Federal Emergency Management Agency (FEMA) official, her aide, and the former president of an energy company were indicted and arrested in connection with an alleged scheme to direct billions of dollars in disaster aid to the company for electricity restoration in Puerto Rico following Hurricane Maria in 2017.

Ahsha Tribble, who until recently was FEMA’s Region II deputy regional administrator and led the agency’s efforts to restore power to the devastated island, is accused of accepting a variety of bribes from Donald Ellison, former president of Cobra Acquisitions, LLC, a subsidiary of Mammoth Energy Services, in exchange for pressuring officials at FEMA and the Puerto Rico Electric Power Authority to improperly assign projects to Cobra.

keep reading this article at: https://www.govexec.com/oversight/2019/09/fema-officials-charged-bribery-over-puerto-rico-power-contracts/159777/

September 21, 2018 By AMK

VA official charged with taking bribes to help associates rig federal contracting process

Three men were arrested in Colorado on Wednesday of this week pursuant to warrants issued in connection with an indictment charging them with conspiring to pay and receive bribes in exchange for creating an opportunity to commit a fraud against the U.S. Department of Veterans Affairs (VA).

The defendants are also charged with paying and receiving bribes, or aiding and abetting the payment of bribes.

Dwane Nevins, a VA contracting official at the time of the alleged crimes, was separately charged in another count with extortion under color of official right and in two counts with violating the federal conflict of interest statute.

The following is alleged in the indictment:

Dwane Nevins — a small business specialist at the VA’s Network Contracting Office in Colorado — agreed to take bribes offered by Robert Revis, Anthony Bueno and an undercover FBI agent to help them manipulate the process for bidding on federal contracts with the VA.
Revis and Bueno, working with Nevins, agreed to submit fraudulent bids from service-disabled-veteran-owned small businesses under contract with their consulting company so that federal contracts would be set aside for only those companies. As Bueno allegedly explained, they would then “own all the dogs on the track.”
Nevins, Bueno and Revis worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to their consulting company, or by asking their consulting company’s clients to pay Nevins for sham training classes related to federal contracting.

The indictment also alleges that, after complaining about not being paid by Revis and Bueno for his participation in the scheme, Nevins used his official position at the VA to extort approximately $10,000 from an undercover FBI agent, telling the agent that “the train don’t go without me. You know what I mean? I’m the engine. I’m the caboose. I’m the engine room.” Nevins also allegedly told the undercover FBI agent: “This is a business and businessmen need to get paid . . . . so I can have my Christmas, you know what I’m saying?”

The indictment alleges that the conspirators attempted to rig the process related to two particular contracts, both of which related to medical equipment and not to the construction of any VA facilities. The first contract related to the procurement of LC bead particle embolization products by a VA hospital in Salt Lake City, and the second contract related to the procurement of durable medical equipment for VA facilities located throughout the region.

The case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of Inspector General, and the U.S. Small Business Administration Office of Inspector General.

Readers are reminded that the defendants are presumed innocent unless and until proven guilty in a court of law.

March 14, 2018 By AMK

COR sentenced to prison for soliciting $320,000 in bribes from Afghan contractors

A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan was sentenced on Mar. 8, 2018 to 100 months in prison for soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.

Mark E. Miller, 49, of Springfield, Illinois was also ordered to serve three years of supervised release following his prison sentence and forfeit $180,000 and a Harley-Davidson motorcycle. Miller previously pleaded guilty to a one-count information charging him with seeking and receiving bribes.

Miller admitted worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012, and maintained a residence in Springfield during that time. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. He was the site manager and a contracting officer representative (COR) for a number of construction projects in Afghanistan.

On Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and, if so, authorizing progress payments to the company by the USACE.

As part of his guilty plea, Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited from the owners of the company approximately $280,000 in bribes in return for making things easier for the company on the road project, including making sure the contract moved along and was not terminated. He further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.

This matter was investigated by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Special Inspector General for Afghanistan Reconstruction, and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, with assistance from the U.S. Postal Inspection Service, Fort Worth Division. The Dept. of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s office of the Central District of Illinois prosecuted this case.

Source: https://www.justice.gov/opa/pr/former-employee-us-army-corps-engineers-afghanistan-sentenced-prison-soliciting-approximately

July 26, 2017 By AMK

COR pleads guilty to soliciting $320,000 in bribes from contractors

A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan pleaded guilty yesterday (July 25, 2017) to soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.

Mark E. Miller, 48, a Contracting Officer’s Representative (COR) with the United States Army Corps of Engineers (USACE), pleaded guilty before a U.S. Magistrate Judge in Springfield, Illinois. Miller is scheduled to be sentenced on November 30, by U.S. District Judge Richard H. Mills.

During the court hearing, Miller testified that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. While in Afghanistan, Miller was the site manager and a COR for a number of construction projects.

Miller testified to the fact that on Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and authorizing progress payments to the company by the USACE.

Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited approximately $280,000 in bribes from the owners of the company, in return for assisting the company in connection with the road project, including making sure the contract was not terminated. Miller further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.

This matter was investigated by the FBI, the Defense Contract Investigative Service, the Special Inspector General for Afghanistan Reconstruction (SIGAR), and the Army’s Criminal Investigation Command.

Source: https://www.justice.gov/opa/pr/former-employee-us-army-corps-engineers-afghanistan-pleads-guilty-soliciting-approximately

The government contracting world is deeply vulnerable to fraud, says a former federal investigator.

A 15-count federal indictment accuses two former FEMA officials and a contractor with bribery, fraud and other offenses related to disaster relief efforts after Hurricane Maria devastated the island in 2017.

Three men were arrested in Colorado on Wednesday of this week pursuant to warrants issued in connection with an indictment charging them with conspiring to pay and receive bribes in exchange for creating an opportunity to commit a fraud against the U.S. Department of Veterans Affairs (VA).

A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan was sentenced on Mar. 8, 2018 to 100 months in prison for soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.

A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan pleaded guilty yesterday (July 25, 2017) to soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.

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