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February 1, 2021 By cs

Bus brokerage exec admits to bribing Marine Corps official in exchange for $2 million in contracts

Darrel Fitzpatrick, who also went by the name Patrick Fields, pleaded guilty on January 21 to Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1).   Sentencing is set for April 29, 2021.

Fitzpatrick faces up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.

According to court papers, in 2019:

  • Fitzpatrick was a senior account manager at a bus brokerage company in Atlanta that provided transportation to the U.S. Marine Corps Reserves.
  • That same year, Fitzpatrick started a competing transportation brokerage company called National Charter Express.
  • Fitzpatrick agreed to pay kickbacks to Erik Martin, a civilian employee of the Marine Corps Reserves, in exchange for Martin directing contracts to the company where he worked and, subsequently, to National Charter Express.
  • The conspiracy resulted in at least $2,000,000 in transportation contracts being corruptly awarded to companies associated with Fitzpatrick.
  • In exchange for the contract awards, Fitzpatrick wired and attempted to wire Martin over $250,000 in bribes.

The Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service investigated this case.

Source: https://www.justice.gov/usao-edla/pr/atlanta-man-admits-bribing-us-marine-corps-official-exchange-2000000-transportation

Also see “Federal Employee Pleads Guilty to Taking $250K in Bribes over Military Transport Contracts” at: https://www.military.com/daily-news/2021/01/06/guilty-plea-military-transportation-bribery-case.html

Filed Under: Government Contracting News Tagged With: abuse, bribe, bribery, conspiracy, corruption, DCIS, DOJ, fraud, Justice Dept., kickback, Marine Corps, NCIS, Secret Service

January 18, 2021 By cs

Former Army contractor executive sentenced for role in bribery and kickback schemes

An former executive of a government contractor has been sentenced for his role in a bribery and kickback scheme where he paid bribes to secure U.S. Army contracts.

John Winslett of Bristol, Rhode Island, was sentenced on Jan. 15th to 70 months in prison, followed by three years of supervised release.

According to court documents and information presented in court, Winslett admitted he paid over $100,000 worth of bribes, between 2011 and 2018, to two U.S. Army contracting officials who worked at the Range at Schofield Barracks in Hawaii.

The bribes included cash, automobiles, and firearms.  In return, Army contracting officials used their positions by awarding $19 million in U.S. Army contracts to Winslett’s employer.

Winslett further admitted that he accepted $723,333 in kickbacks from a local subcontractor in exchange for Winslett assigning those contracts to that local subcontractor.

Army-CID, DCIS and the FBI investigated this case.

Source: https://www.justice.gov/opa/pr/former-government-contractor-sentenced-role-bribery-and-kickback-scheme

Filed Under: Government Contracting News Tagged With: abuse, ACID, acquisition workforce, Army, bribe, bribery, contracting officers, corruption, DCIS, DOJ, FBI, fraud, Justice Dept., kickback, Schofield Barracks

January 6, 2021 By cs

Former NGO procurement official pleads guilty to bribery in connection with USAID contracts

A former non-governmental organization (NGO) procurement official pleaded guilty in late December to paying bribes to NGO procurement officers in exchange for sensitive procurement information related to NGO contracts funded in part by the U.S. Agency for International Development (USAID). 

The USAID contracts were for the procurement of food and supplies that would ultimately be provided to those affected by various humanitarian crises, including refugees displaced by the conflict in Syria.

Ernest Halilov, 42, a citizen of Turkmenistan, pleaded guilty on Dec. 23, 2020 to one charge of federal programs bribery.  Sentencing is scheduled for March 26, 2021.

According to admissions as part of his plea agreement:

  • From January 2011 through December 2016, Halilov coordinated a bid-rigging scheme to bid on contracts procured by NGOs and funded by USAID, to support the agency’s response to various humanitarian crises.
  • Specifically, Halilov bribed two NGO officers in order to obtain confidential procurement information, such as bid evaluation information, specifications, and internal vendor rankings.
  • In turn, Halilov would provide this information to his preferred companies in exchange for kickbacks, ensuring that the companies had an advantage over other bidders, thus increasing their ability to win NGO-procured contracts.
  • Halilov also admitted that he instructed a witness to lie to law enforcement agents and destroy emails related to the investigation.

USAID-OIG investigated this case.

Source: https://www.justice.gov/opa/pr/former-ngo-procurement-official-pleads-guilty-bribery

Filed Under: Government Contracting News Tagged With: bribe, bribery, humanitarian aid, kickback, NGO, proposal evaluation, USAID

November 25, 2020 By cs

Employee of government contractor pleads guilty to fraud and kickback charges

An employee of a government contractor had pled guilty to his involvement in a scheme to overbill a contract administered by the General Services Administration (GSA) by approximately $1.25 million, and solicit and receive kickbacks from a subcontractor in exchange for providing that subcontractor valuable contract modifications.

Elmer Baker of Gulf Breeze, Florida, pleaded guilty to one count of conspiracy to violate the anti-kickback statute and four counts of wire fraud in the U.S. District Court for the District of Columbia.  Sentencing will be scheduled for a later date.

According to admissions made in connection with the plea agreement:

  • Baker served as the project manager for his company on the contract administered by the GSA.
  • After his company awarded a subcontract to a construction company for work on the facility, Baker began receiving kickbacks in the form of meals, golf sessions, vacations, and other things of value.
  • In or around 2015, Baker began demanding monetary kickbacks that were valued at 10 percent of the amount of each of the subcontract modifications that he awarded the subcontractor.
  • Baker sent the subcontractor fake invoices to make it appear as though the payments he was receiving were for legitimate work, and he set up a shell company to receive the payments.
  • Additionally, Baker took the subcontract estimates provided to him and illegally inflated them in his requests to the GSA.
  • Over the course of several subcontract modifications, Baker defrauded the GSA out of approximately $1.25 million.

Prosecution of his case was handled by the Justice Department’s Criminal Division’s Fraud Section, the nation’s leading prosecuting authority on government procurement fraud and corruption matters.

The GSA Office of Inspector General, FBI’s Washington Field Office, and the State Department Office of Inspector General were in charge of investigating this case.

Source: https://www.justice.gov/opa/pr/employee-government-contractor-pleads-guilty-fraud-and-kickback-charges

Filed Under: Government Contracting News Tagged With: abuse, Anti-Kickback Act, bribe, bribery, FBI, fraud, GSA, IG, kickback, modification, OIG, State Dept., wire fraud

October 16, 2020 By cs

Former GSA contract specialist sentenced to prison for accepting bribes

A former government contract officer with the General Services Administration (GSA), was sentenced last week to a 21-month prison term on a federal bribery charge stemming from a scheme in which he accepted bribes from government contractors during a six-year period. 

Ronnie Simpkins of Maryland pled guilty to the charge in December of last year.

According to the government’s evidence, from 1989 until May 2019, Simpkins was employed by GSA as a Contract Specialist in procurement related positions, and between August 2013 and May 2019.  From February 2010 to August 2017, Simpkins was assigned to a sub-division of the Federal Acquisition Service (FAS) which oversees the administration of GSA Schedule 70 contracts. “Schedules” are long-term government-wide contracts with commercial companies that provide access to commercial products and services at fair and reasonable prices to the government. “Schedule 70 contracts” provide IT solutions, services, and software to federal, state, and local customer agencies. GSA pre-negotiates the vendors’ pricing, terms, and conditions, to streamline the acquisition process while at the same time providing the best value to the end user agency.

According to court papers, Company A, a Northern Virginia corporation, held a GSA Schedule contract, which it actively advertised to prospective federal agency customers.  To maintain its GSA Schedule contract, Company A was required to have annual sales in excess of $25,000 — a requirement that could be waived by GSA’s administrative contracting officer.  Company A was also required to pay an Industrial Funding Fee (IFF) of 0.75% of all its Schedule sales.  Dating back to 2006, Company A maintained its GSA Schedule contract despite reporting no sales and not paying any IFFs since 2006.  Simpkins oversaw the contract dating back to 2009.

Simpkins admitted that, for approximately six years between 2011 and 2017, he accepted cash, meals, and furniture from two Company A officials to use his position to help Company A maintain its GSA Schedule contract.  Simpkins admitted to meeting the Company A officials over a dozen times at various restaurants in Northern Virginia, the Company A officials’ residences, and other places, often outside of normal GSA business hours and on weekends.  At these meetings, the Company A officials treated Simpkins to meals and gave him cash totaling “thousands of dollars into the teens.”  In July 2016, Simpkins accepted more than $2,000 worth of furniture paid for by the officials.  Simpkins admitted to taking more than $12,000 in cash and furniture from the Company A officials.

Simpkins admitted to using his GSA position to help Company A in exchange for these payments.  Specifically, Simpkins recommended and signed Company A’s contracts with GSA, even though Company A:

  • failed to meet program requirements,
  • deliberately neglected to notify GSA, as he was obligated to do, when Company A’s contract under his supervision no longer met program requirements, and
  • advised Company A about ways to avoid contract cancellation despite failing to meet GSA’s program requirements.

United States District Judge Trevor N. McFadden, who presided over the case, sentenced Simpkins to 21 months in prison, followed by one year of supervised release.  The Court also imposed a $10,000 fine and ordered Simpkins to forfeit $12,108.91.

The case was investigated by the FBI’s Washington Field Office Criminal Division and the GSA’s Office of Inspector General, and prosecuted by the U.S. Attorney’s Office’s Public Corruption and Civil Rights Section.

Source: https://www.justice.gov/usao-dc/pr/former-federal-government-contract-officer-sentenced-prison-accepting-bribes

Filed Under: Government Contracting News Tagged With: abuse, bribe, bribery, conviction, corruption, DOJ, FAS, FBI, felony, fraud, GSA, GSA Schedule, IT, Justice Dept.

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