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Bribery and Bid-Rigging

This archive displays posts tagged as relevant to bribery and bid rigging in U.S. government contracting. You may also be interested in the following pages:

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November 30, 2018

As part of an ongoing investigation into price fixing in the international freight forwarding industry, Roberto Dip and Jason Handal, executives in a Louisiana-based freight forwarding company, pleaded guilty to charges arising from a conspiracy between competitors to fix prices for freight forwarding services.   Dip and Handal also agreed to cooperate with the ongoing investigation.  DOJ

Catch of the Week — DOJ Nets 3 South Korean Companies in Bid Rigging Scheme

Posted  11/16/18
Our Catch of the Week celebrates DOJ’s massive $236 million settlement with three South Korean-based companies accused of rigging bids to inflate the cost of fuel supplied to U.S. Army, Navy, Marine Corps, and Air Force bases in South Korea, the investigation of which was initiated by a whistleblower represented by Constantine Cannon. The three companies, SK Energy Co. Ltd., GS Caltex Corporation, and Hanjin Transportation Co. Ltd., will plead guilty and pay $82 million...

Three South Korean Companies to Pay $236 Million, Resolving Civil and Criminal Liability for Bid Rigging Alleged in Constantine Cannon Whistleblower Suit

Posted  11/14/18
Bid Rigging Fuel South Korea
The Justice Department announced that SK Energy Co. Ltd., GS Caltex Corporation, and Hanjin Transportation Co. Ltd. collectively agreed to pay $236 million for their respective roles in a decade-long conspiracy to rig bids and fix prices, thereby overcharging the U.S. Government on contracts to supply fuel to U.S. military bases throughout South Korea. The deal resolves False Claims Act allegations against the three South Korea-based companies brought by a...

November 14, 2018

The United States and three South Korea-based companies, SK Energy Co. Ltd., GS Caltex Corporation, and Hanjin Transportation Co. Ltd., have reached an agreement to resolve criminal and civil claims arising from the defendants' alleged bid-rigging and price-fixing in contracts to supply fuel to U.S. military bases in South Korea.  As a result of this conduct, the Department of Defense paid substantially inflated prices for fuel supply services in South Korea. Defendants agreed to plead guilty to criminal charges and pay a total of $236 million -- $82 million in criminal fines and $154 million for civil antitrust and False Claims Act violations related to the bid-rigging conspiracy.  The False Claims Act civil investigation resulted from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The settlement is part of an ongoing federal investigation into bid rigging, price fixing and other anticompetitive conduct targeting U.S. Department of Defense fuel supply contracts in South Korea; the defendants have have agreed to cooperate with that investigation.  DOJ

November 8, 2018

The United States charged two South Korean nationals, Hyeong-won Lee and Dong-guel Lee, of defrauding the federal government in connection with two multimillion dollar construction contracts their employer, South Korea-based SK Engineering & Construction Co., Ltd., (SK), had with the U.S. Army. From 2008 to 2017, acting on behalf of SK, the two allegedly submitted fraudulent subcontracts that were based on millions of dollars of kickbacks that SK paid to a U.S. official in exchange for being awarded the contracts. While the fraud was being investigated, the two also took pains to disguise the kickbacks and fraud even further by ordering employees to burn boxes of evidence and persuading them not to testify. DOJ; USAO WDTN

October 26, 2018

A former U.S. Department of Veterans Affairs official, James King, pleaded guilty to demanding and receiving bribes from three for-profit schools, Atius Technology Institute, Eelon Training Academy, and School A, in exchange for enrolling disabled military veterans in those schools.  All three school owners sent King and other VA officials false information about the education being provided to veterans.  King facilitated over $2 million in improper payments from the VA using the veterans’ federal benefits. DOJ

Catch of the Week — VA Official Pleads Guilty to Bribery, Fraud, and Obstruction in $2 Million Scheme

Posted  10/26/18
A former U.S. Department of Veterans Affairs official, James King, 63, of Baltimore, Maryland, pleaded guilty to demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools. King facilitated over $2 million in improper payments from the VA using the veterans’ federal benefits. He pleaded guilty to one count of honest services and money/property wire fraud, one count of bribery, and one...

October 18, 2018

A political consultant has plead guilty to illegally influencing the awarding of a Department of Energy contract to renovate part of the Lawrence Berkeley National Laboratory (LBNL). The consultant, Derf Butler, was allegedly approached by a developer who paid him $15,000 in cash to locate other developers and convince them to submit higher bids in exchange for subcontractor work on the project. He then lied to federal investigators about having any sort of financial relationship with the developer, even though by then, he'd requested another $15,000 and was anticipating additional funds. At least one developer who submitted a sham bid, Anton Kalafati of B Side Inc., has also plead guilty for his role in the fraud. USAO NDCA

September 24, 2018

Azam Doost, the former owner of Equity Capital Mining LLC, which operated a marble mine in Afghanistan, was convicted for defrauding the Overseas Private Investment Corporation, a U.S. government agency in a $15.8 million loan the company obtained from OPIC. Doost had represented that he had no affiliation with mine suppliers who were paid from the loan proceeds; in fact, he had financial relationships with several of the suppliers, and diverted OPIC funds paid to those suppliers for his own use.  DOJ

August 6, 2018

Richard Olsen, the CFO of Mission Support Alliance LLC, a Department of Energy contractor, will pay $124,000 to resolve allegations that he received a $40,000 kickback from Lockheed Martin. According to the allegations, Mr. Olsen received the kickback in exchange for a Lockheed Martin subsidiary receiving a lucrative subcontract. Mission Support Alliance is a Lockheed Martin subsidiary as well. USAO Eastern District of Washington
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