Former Government Contractor Sentenced For Role In Bribery And Kickback Scheme

 The U.S. Justice Department released the below information: 

A former government contractor was sentenced today for his role in a bribery and kickback scheme where he paid bribes to secure U.S. Army contracts. 

David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Kenji M. Price, U.S. Attorney of the District of Hawaii; Ray Park, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s (Army-CID) Pacific Fraud Field Office; Bryan Denny, Special Agent in Charge of the U.S. Defense Criminal Investigative Service (DCIS); and Eli “Sam” Miranda, Special Agent in Charge of the FBI’s Honolulu Field Office made the announcement. 

John Winslett, 66, of Bristol, Rhode Island, was sentenced to 70 months in prison followed by three years of supervised release before Chief Judge J. Michael Seabright in the District of Hawaii. 

According to court documents and information presented in court, Winslett admitted that from 2011 to 2018, he paid over $100,000 worth of bribes to two U.S. Army contracting officials who worked at the Range at Schofield Barracks, in order to steer federal contracts worth at least $19 million to his employer, a government contractor. The bribes included cash, automobiles, and firearms. In return, the contracting officials used their positions to benefit Winslett’s employer in securing U.S. Army contracts. 

Winslett further admitted that he accepted $723,333.33 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. 

Trial Attorney Laura Connelly and Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein of the District of Hawaii are prosecuting the case.  

Former Navy Noncommissioned Officer Sentenced To 24 Months In Prison For Accepting Bribes While Serving In Afghanistan

The U.S. Justice Department released the below information:

A former Navy noncommissioned officer was sentenced today to 24 months in prison for accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (OSI) made the announcement.

Donald P. Bunch, 46, of Pace, Florida, was sentenced by Senior U.S. District Judge Roger Vinson of the Northern District of Florida, who also ordered Bunch to pay a $5,000 fine and to forfeit $25,000.  Bunch pleaded guilty on Sept. 18, 2015, to a one-count information charging him with accepting bribes.

According to the plea agreement, from February 2009 to August 2009, Bunch worked as a U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan.  The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan, Bunch admitted. 

Bunch was responsible for replenishing food and supplies at the HA Yard and for selecting vendors from a pre-determined list to provide the necessary items, according to his plea.  In connection with his guilty plea, Bunch admitted that his predecessor had instructed him to rotate among the vendors.  

According to admissions made in connection with his plea agreement, certain Afghan vendors offered money for the purpose of influencing their contracts.  Bunch admitted that he accepted a total of approximately $25,000 in bribes from the vendors and as a result, he secured on their behalf more frequent and lucrative contracts.  Bunch sent greeting cards stuffed with proceeds of the bribes to his wife and used the money to pay for the construction of a new home.

The FBI, SIGAR, CID, DCIS and OSI investigated the case.  Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida prosecuted the case.

Defense Contractor Armorsource LLC Agrees To Pay $3 Million To Settle False Claims Act Allegations

The U.S. Justice Department released the below information:

ArmorSource, LLC has agreed to pay $3 million to resolve False Claims Act allegations in connection with a contract to provide combat helmets to the U.S. Army, the Department of Justice announced today.  ArmorSource, a Delaware Limited Liability Company headquartered in Hebron, Ohio, designs, develops and manufactures ballistic helmets for military and law enforcement personnel worldwide.

In 2006, the Army contracted with ArmorSource to manufacture the Advanced Combat Helmet or ACH for use by soldiers in combat.  ACH helmets are made of Kevlar, an armored material, and are worn to provide ballistic protection for the soldier.  The United States alleged that from 2006 to 2009, ArmorSource delivered ACH helmets to the Army that were manufactured and tested using methods that did not conform to contract requirements and that failed to meet contract performance standards.  In May 2010, the Army began recalling the helmets after several lots failed ballistic safety tests.    

“The U.S. government relies on contractors to manufacture equipment that is critical to the safety of our men and women in uniform, and equipment that fails to meet performance standards not only cheats taxpayers, but can put lives at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Today’s settlement demonstrates our commitment to ensuring our military receives products that meet its requirements and for which it has paid.”

“Today’s settlement in this important case is a reminder to all government contractors that they must deliver on their promises, especially when the safety and security of our troops is on the line,” said Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General’s Dallas Field Office.

“Not conforming to contract requirements, failing to meet performance standards, and failing to pass ballistic safety tests for the helmets that protect the very heads and lives of our young men and women who serve this nation is incredibly unconscionable,” said Director Frank Robey of the U.S. Army Criminal Investigation Commands Major Procurement.  “Thanks to the efforts of our special agents and our other law enforcement partners, today’s settlement is possible.”

ArmorSource subcontracted the manufacturing to Federal Prison Industries, Inc., which operates under the trade name UNICOR.  This settlement resolves a lawsuit filed by whistleblowers Melessa Ponzio and Sharon Clubb, FPI employees, under the qui tam or whistleblower provisions of the False Claims Act.  The Act permits private individuals to sue on behalf of the government those who falsely claim federal funds and to receive a share of any recovery.  Ms. Ponzio and Ms. Clubb will receive $450,000.

This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Texas. The investigation was conducted by the Department of Justice Office of the Inspector General, the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit. 

The case is captioned U.S. ex rel. Ponzio, et al. v. Rabintex Industries Ltd., et al., Case No. 1:10-CV-588 (E.D. Tex.).  The claims resolved by the settlement are allegations only; there has been no determination of liability.