Fraud in Corps of Engineers Contracting Charged

October 4, 2011

Strip away the shell companies and complex wire transfers, and what federal prosecutors on Tuesday called "one of the most brazen corruption schemes in the history of federal contracting" was really quite simple.

First, officials at the Army Corps of Engineers and technology company representatives got together and agreed to file inflated invoices for federal contracting services, prosecutors said. 

Then they bought millions of dollars worth of BMWs, Rolex and Cartier watches, flat-screen televisions, first-class airline tickets and investment properties across the globe. Until they were arrested Tuesday, authorities said, they had their sights on another contract, one worth $780 million.

Four men — two program managers at the corps, a son of one of them and the director of contracts at a Dulles technology firm — were indicted on corruption-related charges that were made public Tuesday. 

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