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June 10, 2020

Alutiiq International Solutions LLC (AIS), an Alaskan Native Corporation and government contractor, has agreed to pay $1.25 million and enter into a non-prosecution agreement to settle allegations of violating the Anti-Kickback Act in connection with a multi-million dollar General Services Administration (GSA) contract to modernize the Harry S. Truman Federal Building in Washington, D.C.  Beginning in 2010, a project manager formerly employed by AIS allegedly accepted kickbacks from a subcontractor in exchange for steering more work to the subcontractor, while also fraudulently billing GSA for a non-existent on-site supervisor and overinflating costs from its subcontractor.  AIS and its parent company, Afognak Native Corporation, cooperated fully with the investigation and have since engaged in extensive remedial actions.  DOJ

June 10, 2020

A South Korean engineering company has been ordered to pay $68 million in criminal fines, civil penalties, and restitution after pleading guilty to defrauding the U.S. Army in a 2008 contract worth hundreds of millions of dollars.  According to the press release, SK Engineering & Construction Co. Ltd. (SK) submitted documents to the Army that were doctored to conceal $2.6 million in payments to a fake construction company that had bribed an Army Corps of Engineers official on SK’s behalf.  The company also took steps to hamper investigations by U.S. and Korean officials by withholding and destroying relevant documents, attempting to tamper with a potential witness, and failing to properly discipline the employees involved with the bribery scheme.  SK was suspended from participating in certain contracts with the U.S. government in 2017; with this plea agreement, it will undergo another three years of probation.  DOJ

April 8, 2020

The last defendant in a conspiracy to rig bids and fix prices for supply fuel to U.S. military bases in South Korea has agreed to pay $2 million to resolve civil claims under Section 4A of the Clayton Act and the False Claims Act.  The government’s investigation into all defendants, including Jier Shin Korea Co. Ltd. and its president, Sang Joo Lee, were instigated by a whistleblower and resulted in a previous settlement of over $205 million.  As part of the settlement, Jier Shin and Lee have agreed to cooperate in the ongoing investigation and abide by an antitrust compliance program.  DOJ

January 31, 2020

Airbus SE has agreed to pay more than $3.9 billion to resolve charges by U.S., U.K., and French authorities of violating the Foreign Corrupt Practices Act (FCPA), the Arms Export Control Act (AECA), and the International Traffic in Arms Regulations (ITAR).  From at least 2008 until 2015, the French aircraft manufacturer allegedly paid bribes to officials in China, Ghana, Indonesia, Malaysia, Sri Lanka, and Taiwan, in exchange for improper business advantages and other favorable treatment.  Additionally, Airbus also failed to provide accurate information to the State Department’s Directorate of Defense Trade Controls (DDTC) about commissions it paid in connection with the sale or export of arms.  DOJ; USAO DC

January 31, 2020

A bidder in the sale of a loan from the Department of Energy has agreed to pay $29 million to resolve allegations of colluding to rig the auction of the loan, thus depriving the agency of a fair bidding process and reducing the amount recovered by the agency.  The allegations that Hybrid Tech Holdings LLC, Hybrid Technology LLC, and Ace Strength International LTD exerted pressure on two other bidders to suppress their bids during the live auction were made by whistleblowers William Baldiga and the FAH Liquidating Trust in a qui tam suit.  The relators will share in $5.2 million of the recovery.  DOJ; USAO DC

January 23, 2020

DynCorp International has agreed to pay $1.5 million to settle allegations that two former company officials, Wesley Aaron Struble and Jose Rivera, violated the Anti-Kickback Act and False Claims Act in connection with a Department of State property lease.  The two co-conspirators allegedly solicited and received $390,000 in cash kickbacks from an Iraqi subcontractor, the Al-Qarat Company, in exchange for influencing Dyncorp's lease of the property in Baghdad.  USAO EDVA

October 4, 2019

Zaldy Sabino, formerly a contracting officer with the U.S. State Department, has been convicted of charges related to contracting fraud.  Sabino received hundreds of thousands of dollars in cash from the owner of a construction firm in Turkey that had multiple multi-million dollar contracts with the State Department.  Sentencing is set for February, 2020.  DOJ

September 26, 2019

A military contractor who previously plead guilty to accepting illegal kickbacks and committing wire fraud has been sentenced to over 2 years in prison and ordered to pay $1.4 million in restitution.  Despite being the true owner of Walsh Construction Services, LLC, James Conway concealed his ownership by signing contracts under Keith Walsh, a fictitious name.  He then used Walsh Construction to bill for $1.4 million of work the contractor purportedly performed at Picatinny Arsenal and Joint Base McGuire-Dix-Lakehurst, as well as collect on $180,345 of kickbacks from four subcontractors.  In addition to the prison term and restitution order, Conway was sentenced to three years of supervised release.  USAO NJ

September 19, 2019

Following his conviction at trial in September 2018, Azam Doost, the owner of a marble mining company in Afghanistan, has been sentenced to 4.5 years in prison, and ordered to pay $8.9 million in forfeiture and restitution to the government.  Doost had been convicted for his role in fraudulently obtaining and failing to repay a $15.8 million loan from the Overseas Private Investment Corporation, a U.S. government agency, to Equity Capital Mining LLC, which Doost owned at the time.  DOJ
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