Ashley Ann Lamere Pleads Guilty in U.S. Federal Court

The United States Attorney’s Office announced that during a federal court session in Billings, on August 23, 2012, before Chief U.S. District Judge Richard F. Cebull, Ashley Ann Lamere, a 32-year-old resident of Billings, pled guilty to wire fraud and bribery. Sentencing has been set for November 28, 2012. She is currently detained.

In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:

Lamere, aka Ashley Ann Thompson, operated numerous office supply companies and/or used various company names to defraud the United States military through various schemes, to include the following: billing government credit cards without authorization; billing more than was authorized on government credit cards; and bribing government officials to purchase additional items with cash and gift cards. Lamere operated and/or used the following companies to accomplish her scheme: Base Suppliers Inc., Federal Office Supply, Fresh, Government Cartridge Supply, Impac Office Supply, Red Dog Toner, Rimrock Office Supply, Servumart, and Yellowstone Office Supply. Lamere operated the previously described companies out of two Billings addresses between 2005 and 2010. The companies focused on selling office supplies to government agencies, primarily the military, through telemarketing.

To accomplish the scheme to defraud, Lamere and her employees gave military procurement personnel Western Union and Money Gram wires, gift cards, and cash to either induce them into buying office supplies through the companies and/or as a gratuitous gift after the order was placed. Lamere and her employees sent the military procurement personnel the wires, cards, and cash via Federal Express packages, often sent to the procurement personnel’s personal address. Even after Lamere and her employees were told by procurement personnel that they were not allowed to accept gifts over approximately $20, Lamere and her staff continued to offer and provide amounts far in excess of $20 to military members.

Once military personnel were promised wires, cash, and gift cards, Lamere and her employees often did not send all the agreed upon supplies. At times, no supplies at all were sent by Lamere and her employees to fulfill the individual orders. Also, after obtaining a government purchase card (GPC) number from a military member, Lamere and her employees made unauthorized charges on the GPC cards.

Military procurement personnel can authorize, without a supervising officer’s approval, charges under $3,000. In an effort to circumvent the military procurement rules and regulations Lamere set up numerous companies so more than $3,000 could be ordered from the various companies on any given day. Lamere went so far as to provide guidance to military procurement personnel to assist them in avoiding detection from auditing authorities.

A total of 24 government procurement professionals were interviewed by law enforcement. Of the 24 interviewed, 17 individuals admitted receiving cash and/or gift cards in exchange for placing supply orders with the subject companies. In addition law enforcement used a cooperating witness and an undercover agent to record and monitor Lamere and her business practices. Both individuals’ contacts with Lamere supported the claims that Lamere bribed government procurement officers and billed unapproved charges to GPC cards. Specifically, the investigation uncovered that on or about March 12, 2010, at Billings, Lamere directly offered cash to E.C., a member of the United States Navy responsible for obtaining supplies on behalf of his/her unit, if he/she continued to purchase unnecessary office supplies from Lamere’s companies. On March 15, 2010, at Billings, Lamere caused to be transmitted by means of wire communication in interstate commerce a Money Gram wire transfer of $300 from Lamere, in Billings, to E.C. in Jacksonville, Florida, to pay the bribe offered on March 12, 2010.

From 2008 to 2010, Lamere obtained more than $1 million in purchases from credit cards through her various companies. Lamere’s business expenses, as deduced from her bank records, were less than $100,000 during the same time period.

Lamere faces possible penalties of 20 years in prison, a $250,000 fine, and three years’ supervised release.

The investigation was a cooperative effort between the Federal Bureau of Investigation, the Navy Criminal Investigation Service, General Services Administration-Office of Inspector General, U.S. Department of Defense-Office of Inspector General, Criminal Investigation Division of the Internal Revenue Service, Air Force Criminal Investigation Division, and the Army Criminal Investigation Division.

Former Civilian Contractor Sentenced to 24 Months in Prison for Role in Scheme to Steal and Sell Military Equipment in Iraq

A former U.S. civilian contractor was sentenced today to 24 months in prison for conspiring to steal military generators in Iraq and selling them on the black market, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina.

 David John Welch, 36, of Hope Mills, N.C., was sentenced by U.S. District Judge W. Earl Britt in the Eastern District of North Carolina.   Welch was also sentenced to three years of supervised release following his prison term and was ordered to pay $160,000 in restitution to the Department of Defense.  Welch pleaded guilty on April 2, 2012, to a criminal information charging him with conspiracy to steal property under the control of a government contractor.

 According to court documents and information presented at his plea hearing, Welch was the operations and maintenance manager of a U.S. government contractor on Victory Base Complex in Baghdad.  In this capacity, Welch had the ability to influence the distribution and movement of military equipment as well as U.S. government equipment.  In addition, Welch was in charge of overseeing the movement of generators from the compound to the Defense Reutilization & Marketing Office (DRMO).  In October 2011, Welch and a co-conspirator entered into a scheme to steal and later sell approximately 38 generators on the black market in Iraq to unknown co-conspirators by diverting these generators from the DRMO to an undisclosed location off-base in Iraq.   After the generators were stolen from the compound, Welch’s co-conspirator provided him with four stacks of $100 bills, totaling approximately $38,600.

 This case is being prosecuted by Special Trial Attorney Mark Grider of the Criminal Division’s Fraud Section, on detail from Special Inspector General for Iraq Reconstruction (SIGIR), with assistance from Assistant U.S. Attorney Banumathi Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina.  The case is being investigated by the FBI, SIGIR and the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command.

Army Sergeant and Associate Convicted on All Counts for Roles in Bribery and Money Laundering Scheme Related to Defense Contracts to Support Iraq War

To Date, 19 Individuals Have Pleaded Guilty or Been Convicted at Trial in Ongoing Corruption Investigation

WASHINGTON – A federal jury in Elkins, W. Va., convicted Richard Evick, a U.S. Army Sergeant First Class and Non-Commissioned Officer in charge of contracting at a U.S. military base in Kuwait, and his associate, Crystal Martin, of all counts with which they were charged in connection with a bribery and money laundering scheme related to defense contracts awarded in support of Operation Iraqi Freedom, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney William J. Ihlenfeld II for the Northern District of West Virginia.

 Evick was found guilty yesterday of one count of bribery conspiracy, two counts of bribery, one count of money laundering conspiracy, six counts of money laundering and one count of obstructing an agency proceeding.  Martin was found guilty of one count of bribery conspiracy, one count of money laundering conspiracy and four counts of money laundering.

 “As the highest ranking enlisted officer in the U.S. Army’s contracting office at Camp Arifjan in Kuwait, Mr. Evick had a special duty to strike deals in the best interests of the American people,” said Assistant Attorney General Breuer.  “Instead, he steered business to dirty contractors in exchange for tens of thousands of dollars in cash and other items.  Mr. Evick, Ms. Martin and their co-conspirators defrauded the government they had sworn to serve.  To date, our investigation has led to the convictions of 19 individuals, and we will continue aggressively to pursue corruption and procurement fraud wherever we find it.”

 “The investigation and prosecution of public corruption cases continues to be a top priority for the Department of Justice in West Virginia and throughout the country,” said U.S. Attorney Ihlenfeld.  “Fortunately the vast majority of our public officials are honest and trustworthy, but those who are not will be held accountable.”

 Evick served as the U.S. Army’s Non-Commission Officer in charge of contracting at Camp Arifjan between 2005 and 2006.  In that capacity, Evick had the authority to arrange for the award of valuable contracts to supply the U.S. military with bottled water and catering services, maintain Army barracks and install security barriers, among other things.

 Evidence presented at trial demonstrated that Evick and his co-conspirators manipulated the contracting process in several ways, including disclosing confidential information about the U.S. military’s plans to procure goods and services and accepting fake bids.  In this manner, Evick and two of his fellow contacting officials, former Army Majors James Momon and Chris Murray, steered nearly $24 million worth of contracting business to certain contractors.  In exchange, these contractors paid Evick more than $170,000 in bribes, a free New Year’s Eve trip to Dubai and parties.

 Among the persons who paid Evick these bribes was Wajdi Birjas, a civilian U.S. government employee at Camp Arifjan who had a secret interest in a military contractor operating in Kuwait.  Birjas testified that he provided phony bids to Evick from purportedly independent contractors who were, in reality, controlled by the same individuals.  The evidence showed that Evick used these bids to create the false impression that the contracts were awarded according to Army contracting rules providing for a competitive bidding process.  Birjas also testified that he had a hidden safe at his villa where Momon stored more than $800,000 in bribe money and which Evick used to exchange a large amount of Kuwaiti currency for U.S. dollars.

 According to the evidence, Evick gave much of his bribe money to Martin, who had a concession from the Army and Air force Exchange Service to sell merchandise at Camp Arifjan, which was primarily a cash business.  Evick and Martin then transferred tens of thousands of dollars worth of Evick’s bribe money to the U.S. into the hands of Evick’s wife and his girlfriend.  The evidence showed that, in order to conceal the fact that this was bribe money, Evick and Martin converted the money into Western Union wires, money orders, cashiers checks and personal checks.  Evick and Martin also smuggled cash into the U.S. on their persons, Martin often taking military transport flights to avoid customs screening.  Evick used his bribe money, among other things, to purchase and construct a residence on three and one half acres in Parsons, W. Va., and to buy a pickup truck.

 The evidence showed that Evick and Martin also participated in a scheme to smuggle $250,000 of bribe money belonging to Momon into the U.S.  Momon testified about a summer 2006 meeting at Kuwait international airport with Evick and Martin, at which Martin described how she was laundering Evick’s bribe money and offered to provide the same service for Momon.  According to evidence presented at trial, Evick offered to bury Momon’s money on Evick’s West Virginia property.  When law enforcement agents interviewed Evick several months later about corruption at Camp Arifjan, Evick falsely stated that he did not know the contractor from whom evidence showed he had received a $150,000 bribe, among other things.

 “Contingency contracting provides an opportunity for honest contractors to excel but still runs the inherent risk of fraudulent activity that plagues all government contracting,” said Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service.  “While our service members and defense civilians expect the best from their supporting contracts, we root out the worst and, working alongside our law enforcement partners, continue to aggressively bring those who defraud our nation’s warfighters to justice.”

 “We are very pleased with the guilty verdicts in this case,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.  “It is a warning to anyone, in or out of uniform, who attempts to defraud the Army or the government that we will investigate credible allegations and bring those responsible to justice.  Our agents have done a remarkable job investigating this case along with our fellow law enforcement partners and the DOJ.”

 “The fact that a jury convicted these two individuals on all 11 counts stands as a powerful reminder that  those who break the public trust to engage in bribery and money laundering with funds meant for the reconstruction of Iraq will face the full force of the law,” said Stuart W. Bowen, Special Inspector General for Iraq Reconstruction (SIGIR).  “SIGIR and those who work with us will continue work on those cases still open against those involved in illegal acts.”

 Evick and Martin face a maximum sentence of five years in prison for bribery conspiracy, 20 years in prison for money laundering conspiracy and 20 years in prison for each count of money laundering.  Evick also faces a maximum of 15 years in prison for each count of bribery, five years for obstructing an agency proceeding and the forfeiture of the proceeds of his bribe scheme, which includes his West Virginia residence.  They also face maximum fines of $250,000 per count.  They will be sentenced by Chief U.S. District Judge John Preston Bailey.  Their sentencing date has not yet been scheduled.

 The case against Evick and Martin arose from a corruption probe focusing on the contracting office at Camp Arifjan, a U.S. military base in Kuwait.  As a result of this investigation, 19 individuals, including Evick and Martin, have pleaded guilty or been found guilty at trial for their roles in the scheme.  Momon pleaded guilty in August 2009 to receiving approximately $1.6 million in bribes and agreed to pay $5.7 million in restitution, and he is awaiting sentencing.  Murray pleaded guilty in January 2009 for his role in the scheme and was sentenced in December 2009 to 57 months in prison.  Birjas pleaded guilty in September 2010 and he is awaiting sentencing.

 The case is being prosecuted by Trial Attorneys Peter C. Sprung, Eric G. Olshan, Timothy J. Kelly and Edward J. Loya Jr. of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Andrew R. Cogar of the U.S. Attorney’s Office for the Northern District of West Virginia.  The case is being investigated by special agents of the Defense Criminal Investigative Service, the Army Criminal Investigation Command Division, Internal Revenue Service-Criminal Investigation, the FBI and SIGIR.

Virginia Businessman Pleads Guilty to Federal Charges in Bribery and Kickback Scheme Involving Government Contracts

Nine People Have Now Pled Guilty, Including Two Former Managers with the U.S. Army Corps of Engineers

WASHINGTON—Nick Park, also known as Nochol Park, 47, a Northern Virginia businessman, pled guilty today to federal charges in a case involving bribery, kickbacks, and government contracts that were awarded through the U.S. Army Corps of Engineers and the Department of the Army, bringing to nine the number of defendants who have now pled guilty to charges.

Park pled guilty to two counts of bribery before the Honorable Magistrate Judge John M. Facciola in the U.S. District Court for the District of Columbia. No sentencing date was set. He faces a maximum of 15 years in prison for each of the charges, along with potential fines and restitution.

The plea was announced by U.S. Attorney Ronald C. Machen Jr.; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; Rick A. Raven, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).

Today’s developments come a month after the guilty plea of Kerry F. Khan, a former program manager for the Army Corps of Engineers. Khan, 54, pled guilty to charges of bribery and conspiracy to commit money laundering in a scheme in which he received or was promised more than $26 million in payments from various contractors who submitted fraudulently inflated invoices to the government.

According to a statement of offense, signed by the government as well as the defendant, Park started work in early 2007 for Nova Datacom, LLC, one of the companies that would become involved in the scheme. Nova Datacom was a provider of information assurance and security services to federal agencies and commercial companies, including the U.S. Army Corps of Engineers. While at Nova Datacom, Park worked with, among others, Alex N. Cho, who was then the company’s chief technology officer.

In 2007, Park and Cho took part in discussions with Khan about government contracts. In exchange for Khan using his official position to direct orders to Nova Datacom, Park and Cho agreed to provide him with items of value. Later that year, Park provided Khan with cash payments on two occasions, totaling at least $50,000.

In August of 2007, Khan stated that Nova Datacom would not have to provide any equipment or services in return for an anticipated contract. Park declined to go forward with the order based on, among other things, his concern that the fictitious contract would be detected. Park also left Nova Datacom at that time and urged Cho to stop doing business with Khan.

As part of his statement of offense, Park admitted paying bribes to a second public official, identified in court papers as Public Official C, who was employed by the Department of the Army. Park admitted providing Public Official C with $40,000 in cash and other benefits in exchange for Public Official C directing orders to Nova Datacom. After Park left Nova Datacom to start his own government contracting company, Unisource Enterprise Inc. (UEI), Park admitted that Public Official C agreed to direct orders to UEI in exchange for Public Official C obtaining a secret ownership interest in UEI. As part of his plea agreement, Park has agreed to cooperate with the government in its ongoing criminal investigation.

In addition to Park and Khan, the others who have pled guilty include Michael A. Alexander, a former program manager with the Army Corps of Engineers; Harold F. Babb, the former director of contracts at Eyak Technology LLC (EyakTek), an Alaska Native-owned small business; Cho, the former chief technology officer of Nova Datacom, LLC; Theodoros Hallas, who also worked for Nova Datacom; Robert L. McKinney, the president of Alpha Technology Group, Inc.; James Edward Miller, the owner of Big Surf Construction Management LLC; and Lee A. Khan, the son of Kerry Khan.

In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge McJunkin, Inspector General Gustafson, Special Agent in Charge Craig, Special Agent in Charge Raven, and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency; the Washington Field Office of the Internal Revenue Service-Criminal Investigation; and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.

They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson and Bryan Seeley of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section. Finally, they expressed thanks for assistance provided by former Special Assistant U.S. Attorney Christopher Dana; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Lenisse Edloe, Shanna Hays, Taryn McLaughlin, Sarah Reis, Christopher Samson, and Nicole Wattelet; and Legal Assistants Krishawn Graham and Jessica McCormick.