DCIS | The Contracting Education Academy

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

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

December 17, 2019 By cs

Former Army employee charged with bribery, kickbacks in connection with scheme to steer contracts

A former civilian employee of the U.S. Army was charged in an indictment unsealed Dec. 12th for his role in a scheme to steer Army contracts for work to be performed at Camp Arifjan, a U.S. Army base in Kuwait.

Ephraim Garcia, 62, was charged in an indictment filed in December 2018 in the District of Columbia with one count of offering a bribe, one count of receiving illegal gratuities and one count of offering kickbacks.

The indictment further charges Gandhi Raj, 39, with paying illegal gratuities to Garcia.

As alleged in the indictment:

Garcia worked in the U.S. Army’s Directorate of Public Works and was involved in the solicitation, award and management of various government contracts related to projects at Camp Arifjan.
In or around September 2015, Garcia allegedly approached an employee of a prime contractor and offered to pay him in exchange for his assistance in steering contracts to a particular subcontractor owned by Raj, Gulf Link Venture Company.
Garcia allegedly told the prime contractor employee that Gulf Link would artificially inflate the cost of certain of its bid proposals, and Garcia, Gulf Link and the prime contractor employee would split the proceeds.
Additionally, over a period of about five years, Garcia and/or members of his immediate family allegedly received over $170,000 in wire transfers from Raj and other individuals associated with Gulf Link and another subcontractor that was bidding on work under the prime contract.

Garcia was arrested on Dec. 10, 2019, in the Philippines, where he has been residing since 2016. Raj, who was living in Kuwait at the time of the offense, remains a fugitive.

The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Army Criminal Investigation Command (CID) and Defense Criminal Investigative Service (DCIS) investigated the case. The Fraud Section of the Justice Department’s Criminal Division is prosecuting the case.

Source: https://www.justice.gov/opa/pr/former-army-employee-charged-bribery-kickbacks-connection-scheme-steer-contracts

February 14, 2019 By AMK

Former COR sentenced to 5 years in prison for conspiracy and bribery

Jerry T. Vertefeuille of Niceville, Florida was sentenced on Feb. 12th to 60 months in prison. Co-defendant Christopher A. Carter of Fort Walton Beach, Florida is scheduled to be sentenced on February 15th.

Vertefeuille pleaded guilty to conspiracy (to commit theft of honest services and wire fraud), bribery of a public official, and obtaining and disclosing procurement information.

Vertefeuille was a federal Contracting Officer Representative (COR) for the 96 Test Wing Maintenance Group (96 MXG) at Eglin Air Force Base. His duties included overseeing maintenance work and initially approving purchases and invoices.

In 2007, Vertefeuille helped Carter, as the owner of TCC Services, Unlimited, LLC, win a paint booth maintenance contract, as well as multiple contract renewals. Vertefeuille received kickbacks in exchange for approving Carter’s fraudulent invoices and recommending the renewal of TCC’s contract.

U.S. Attorney Keefe said: “Public corruption is an attack on the rule of law, which is the mission of the Department of Justice and the cornerstone of American government. The U.S. Attorney’s Office, along with local, state, and federal law enforcement agencies, is committed to upholding the public’s faith in honest services and enforcing high ethical standards.”

“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 with the southeast field office of the Defense Criminal Investigative Service (DCIS). “DCIS, along with our investigative partners, remains committed to pursuing and bringing to justice anyone who uses fraud and deception to undermine the critical missions of the Department of Defense and the safety of our communities.”

Source: https://www.justice.gov/usao-ndfl/pr/former-government-contracting-officer-representative-sentenced-60-months-prison

December 31, 2018 By AMK

Manufacturer agrees to pay $400,000 to settle False Claims Act violations

The United States Attorney’s Office for the Middle District of Pennsylvania has announced that Arvco Container Corporation of Kalamazoo, MI has agreed to pay $400,000 to settle False Claims Act allegations in connection with a contract with the Defense Logistics Agency (DLA) in New Cumberland, PA.

Arvco Container Corporation (Arvco) violated subcontract limitations imposed by federal regulations and the terms of a contract to provide corrugated boxes to the federal government from August 3, 2010 through August 3, 2014. The contract was awarded by the DLA to Fibre Technologies LLC (Fibre) located in Reading, PA.

The contract was set-aside for eligible HUBZone small businesses in accordance with program requirements administered by the U.S. Small Business Administration (SBA).

Federal regulations and the terms of the contract limited Fibre’s ability to subcontract the manufacturing of the boxes to no more than 50 percent. Arvco performed 100 percent of the manufacturing requirement.

Arvco’s gross profits for the performance of the contract total $246,682 which will be returned to DLA. Arvco also agreed to pay a civil penalty amount of $153,318.

Limitations on subcontracting provisions in federal contracts are designed to ensure that otherwise ineligible businesses do not use small or disadvantaged businesses merely as vehicles to access set-aside contracts.

This case was investigated by the U.S. Attorney’s Office for the Middle District of Pennsylvania, the SBA’s Office of Inspector General, and the Defense Criminal Investigative Service.

Readers are reminded that the claims resolved by the settlement are allegations only, and there has been no determination of liability.

Source: https://www.justice.gov/usao-mdpa/pr/michigan-corrugated-manufacturer-agrees-pay-400000-settle-false-claims-act-violations

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.

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.

A former civilian employee of the U.S. Army was charged in an indictment unsealed Dec. 12th for his role in a scheme to steer Army contracts for work to be performed at Camp Arifjan, a U.S. Army base in Kuwait.

Jerry T. Vertefeuille of Niceville, Florida was sentenced on Feb. 12th to 60 months in prison. Co-defendant Christopher A. Carter of Fort Walton Beach, Florida is scheduled to be sentenced on February 15th.

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