US charges 6 with conspiracy to defraud agencies through IT contract schemes

The Justice Department has charged six people with defrauding a number of government agencies, including those in the defense and intelligence community, through a series of bidding, kickbacks and bribery schemes, the agency said Tuesday.

The move is one of “the first indictments in the Department of Justice’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government buyers, including the intelligence community,” Justice said in a statement.

Victor Marquez, owner of two IT companies with significant government contracts, faces a four-count indictment on charges of wire fraud conspiracy, wire fraud and major fraud against the U.S. for rigging bids and inflating contract payments. Two others who worked alongside him, Antwann CK Rawls – an employee at one of his companies – and Scott Reefe – an IT sales manager – were also charged.

Court documents filed in Maryland alleged that the trio exchanged bidding information before submitting offers, with one emailing that he would submit a “third bid at a high price.” Marquez and his accomplices submitted these coordinated bids with full knowledge that the government was seeking independent, competitive submissions for the contracts, and despite Marquez’s certification of independent bids, Justice alleges.

The government often awards the contract to the lowest reasonable bidder or the one that offers the best value, depending on the circumstances. In cases of bid rigging or fraud, companies conspire to manipulate the bidding process by coordinating bids to undermine competition and illegally increase their returns. Marquez did not respond to a request for comment.

In addition, Breal Madison Jr. indicted on thirteen counts, including conspiracy, bribery of a public official, mail fraud, and money laundering, for orchestrating a multi-year scheme that defrauded his employer of more than $7 million in connection with the sale of IT products. to various government agencies.

IT contractor Brandon Scott Glisson, who provided services to the U.S. government, has been charged along with his supervisor, Lawrence Eady, a former senior government official, for their respective parts in the Madison scheme.

Madison and his co-conspirators plotted to steal money from his then-employer, Rubrik, and government agencies. According to the allegations, he diverted more than $9 million in stolen proceeds to his shell company, Trident Technology Solutions, and to another shell entity.

The DOJ has provided Rubrik, a cloud cybersecurity company, with a grand jury subpoena last October regarding a former employee who had worked in the sales department, citing possible violations of federal law related to government contracts.

“We are deeply disturbed by the alleged conduct of a former employee in connection with a scheme to defraud Rubrik and the government. The alleged conduct is contrary to our values ​​and company ethos and is contrary to our Code of Conduct and other company policies. As previously disclosed in public documents, we have cooperated with authorities and will continue to do so,” a Rubrik spokesperson said. Next Government/FCW.

Madison did not return a request for comment.

“Antitrust crimes can undermine competition for products and services vital to our national security,” Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division said in a news release. “When fraudsters siphon taxpayer dollars, the Antitrust Division and its Procurement Collusion Strike Force (PCSF) partners across government will hold accountable those who conspire to undercut competition, line their pockets with federal procurement dollars and compromise the integrity of endangering our intelligence community programs. ”

Officials from the Defense Criminal Investigative Service, the FBI, the National Security Agency Office of Inspector General and the CIA Office of Inspector General also issued statements reaffirming their agencies’ commitments to stop such fraud schemes.