Feds Charge Army Officer, 2 Others In Fraud Scheme

August 21, 2012

An Army Reserve lieutenant colonel and two former Special Forces soldiers were indicted Wednesday in a multimillion-dollar fraud scheme to win military contracts in Afghanistan.

The 72-count indictment was returned Wednesday by a federal grand jury in Salt Lake City.

The active Army Reservist indicted in the case was a procurement official who leaked bid information that allowed all three men to pocket $20 million from a series of contracts that grew to $54 million, U.S. Attorney David Barlow said.

David Young, 49, of Hernando Beach, Fla., vigorously denies any wrongdoing, said his lawyer, Brett Tolman, who insisted Young wasn’t a procurement official for the Army, didn’t leak bid information, had no ability to award the contract and performed no services for it.

Young made money on separate business ventures with one of the other defendants and had millions of dollars wrongfully seized by the federal government, said Tolman, a former U.S. attorney for Utah.

Also indicted was Michael L. Taylor, 51, of Boston, who formed the Massachusetts-based firm, American International Security Corp., which was awarded the contracts.

Barlow refused to say whether the defense contractor delivered on the Army services in Afghanistan, insisting the case was instead about the suspects using illegally obtained information to gain the contracts, not whether the services were performed.

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