Management

GSA Scandal in Perspective: ‘Brazen’ Army Corps kickbacks

In October 2011, two contracting officers with the Army Corps of Engineers were arrested and charged with conspiracy and bribery in connection with a $28 millio...

Federal News Network Staff

April 17, 2012 8:46 pm

< a min read

In October 2011, two contracting officers with the Army Corps of Engineers were arrested and charged with conspiracy and bribery in connection with a $28 million kickback scheme.

The U.S. attorney prosecuting the case, which involved Army Corps contracting officers, Kerry F. Khan and Michael A. Alexander, called the alleged scam “one of the most brazen federal contracting scandals in our nation’s history.”

After IT contractor EyakTek obtained technology contracts with the agency, Khan and Alexander are alleged to have directed work to a third-party subcontractor, which submitted inflated quotes eventually passed on to the government. Khan and Alexander are accused of sharing the profits with Harold Babb, the director of contracts at EyakTek.

Both Babb and Alexander pleaded guilty in plea deals, according to media reports.

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