Three Men Held in Jail for Massive Corps of Engineers Contracting Scam
October 6, 2011
Three men accused of participating in what prosecutors have called one of the most audacious contracting scams in U.S. history on Thursday were ordered held in jail until their trials.
A fourth defendant will remain detained until another court proceeding next week, the federal judge said.
The four men — two program managers with the Army Corps of Engineers, a son of one of them and the contracting director of a Dulles-based firm — were arrested Tuesday and accused of stealing about $20 million in a long-running kickback scheme.
The two Corps employees — Kerry F. Khan, 53, of Alexandria, and Michael A. Alexander, 55, of Woodbridge — Khan's 30-year-old son, Lee, and contracting director Harold F. Babb, 60, were charged with conspiring to commit bribery, money laundering and wire fraud. All four have pleaded not guilty.