Six individuals face charges for allegedly engaging in schemes to rig bids, defraud the government, and pay bribes related to IT products and services sold to federal government purchasers. These activities reportedly led to millions of dollars in overcharges to the U.S. government, including the Department of Defense (DoD).
Federal grand juries in Baltimore returned indictments against two defendants on October 9 and October 16. Four others were also charged. These cases mark the first charges in an ongoing Justice Department investigation into IT manufacturers, distributors, and resellers selling products and services to government purchasers, including the intelligence community.
"Antitrust crimes can undermine competition for products and services that are vital to our national security," said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. "When fraudsters siphon taxpayer funds, the Antitrust Division and its Procurement Collusion Strike Force (PCSF) partners across the government will hold accountable those who collude to subvert competition, line their pockets with federal procurement dollars and compromise the integrity of our intelligence community programs."
"This office and our partners will use all available resources to hold accountable those who would undermine and distort the government’s procurement of goods and services, especially those related to our cybersecurity infrastructure," stated U.S. Attorney Erek L. Barron for the District of Maryland.
Special Agent in Charge Christopher Dillard from DCIS emphasized protecting DoD's procurement process: "The Defense Criminal Investigative Service is committed to identifying fraudsters who abuse public trust and enrich themselves through criminal schemes."
FBI Baltimore Field Office Special Agent William J. DelBagno asserted their commitment: "There is no place for fraudsters and crooks scheming to manipulate the government bidding process for personal gain."
National Security Agency Acting Inspector General Kevin Gerrity highlighted their priority: "Investigating complex fraud schemes is a top priority of ours."
In one case, Victor M. Marquez faces charges including wire fraud conspiracy for allegedly manipulating bids using insider information. If convicted, he could face significant prison time.
Another defendant, Breal L. Madison Jr., was indicted on multiple counts involving conspiracy, bribery, mail fraud, and money laundering connected with a scheme defrauding his employer and U.S. agencies out of over $7 million.
The DCIS, FBI Baltimore Field Office, CIA Office of Inspector General, and NSA Office of Inspector General conducted investigations leading to these charges.
Acting Assistant Chief Michael Sawers along with other attorneys from both the Antitrust Division’s Washington Criminal Section and District of Maryland are prosecuting these cases.
Individuals with information about this or similar investigations are encouraged to contact PCSF via www.justice.gov/atr/webform/pcsf-citizen-complaint.
An indictment is an allegation; all defendants remain innocent until proven guilty beyond a reasonable doubt in court.
