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Wednesday, September 08, 2010
Wednesday, September 08, 2010
Corporate Social Responsibility News
Posted: Wednesday, February 24, 2010, 9:05AM
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US Army contractor admits $3m bribery fraud
Former military contractor Terry Hall, 43, has pleaded guilty to conspiracy to pay more than $3m in bribes to US Army contracting officials stationed at Camp Arifjan, a base in Kuwait, and to money laundering conspiracy.Hall was indicted on May 6, 2009, along with US Army Major Eddie Pressley, 39, and his wife, Eurica Pressley, 37. According to court documents, Hall's companies received approximately $21m between 2005 and 2007 in connection with contracts his companies received. To obtain the contracting business and facilitate unlawful payments by other contractors, Hall admitted he made more than $3m in unlawful payments and provided other valuable items and services to army contracting officials stationed at Camp Arifjan, including US Army Major Eddie Pressley, and former Majors John Cockerham, James Momon and Christopher Murray, among others.
According to court documents, Hall owned and operated several companies, including Freedom Consulting and Catering Co (FCC) and Total Government Allegiance (TGA), which provided goods and services to the US Department of Defense (DoD) in connection with Operation Iraqi Freedom. Hall's companies received a Blanket Purchase Agreement (BPA) to deliver bottled water in Iraq and a contract to construct a security fence in Kuwait.
A BPA is an indefinite delivery, indefinite quantity contract by which the DoD agrees to pay a contractor a specified price for a particular good or service. Based on a BPA, the DoD is permitted to order the supplies on an as-needed basis, and the contractor is bound by the price agreed upon in the BPA. The term for this type of order by the DoD is a "call."
The case against Hall arose out of a wide-ranging investigation of corruption at the Camp Arifjan contracting office. To date, eight individuals including Hall have pleaded guilty for their roles in the bribery scheme. On Dec. 2, 2009, Cockerham was sentenced to 210 months in prison and ordered to pay $9.6 million in restitution. According to court documents, Cockerham arranged for Hall's companies to receive bottled water calls worth more than $2.6m, as a result of which Hall paid Cockerham approximately $800,000.
According to court documents, Momon arranged for Hall's companies to receive bottled water calls worth approximately $6.4m, as a result of which Hall paid Momon more than $300,000. Momon pleaded guilty on Aug. 13, 2008, to receiving bribes from various contractors at Camp Arifjan, including Hall, and is awaiting sentencing.
The case against Eddie Pressley and his wife, Eurica Pressley, is scheduled for trial on April 5, 2010. The indictment alleges that the Pressleys received more than $2.8m in money and other valuable items from Hall, in exchange for Eddie Pressley's agreement to take official actions to benefit Hall.
The charge of bribery conspiracy carries a maximum prison sentence of five years and a $250,000 fine. The money laundering conspiracy carries a maximum prison sentence of 20 years and a $250,000 fine. According to the court documents, Hall will forfeit $15,757,000 to the U.S. government.
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