Former ISS executives plead guilty

The former chief executive officer and a senior vice president of Information Systems Support Inc. of Gaithersburg, Md., pleaded guilty this week to conflict-of-interest charges related to Pentagon contracts in Korea, according to U.S. Attorney Rod Rosenstein of Baltimore.

Young Y. Lee, 46, of Rockville, Md., who was ISS' founder and its chief executive until he retired earlier this month, and Lorn J. MacUmber, 67, of Gypsum, Colo., senior vice president of ISS, each pleaded guilty July 25 to a single count of aiding and abetting a conflict of interest, according to a news release from Rosenstein's office.

Lee and MacUmber each face a maximum sentence of five years imprisonment and a $25,000 fine.

The conflict involves Lee's and MacUmber's interactions with Army Col. Richard J. Moran, who had responsibility for solicitation, award and oversight of more than 17,000 military contracts in Korea, including the planned re-procurements of the Global Command and Control System-Korea and the Korean Battle Simulation Center.

From April 2001 to January 2002, Lee and MacUmber bought dinners for Moran and his wife and engaged in conversations about hiring the colonel after his retirement from the military. During that period, Moran remained on active duty and did not recuse himself from matters dealing with ISS.

In October 2001, a task order for the Global Command and Control System-Korea was awarded to the ISS team. In addition, Moran told another contractor in December 2001 that "if he wanted to continue to participate in the Korean Battle Simulation Center program, it should compete for the work as a subcontractor to ISS," the press release stated.

In January 2002, MacUmber and Moran discussed ISS' offer to hire Moran as director of Western corporate support projects with a starting salary of $110,000, plus additional benefits, the release states.

Moran never went to work for ISS; he was arrested Jan. 16, 2002. He pleaded guilty to conspiracy and bribery charges in 2003 and is currently in prison.

Earlier this month, ISS promoted Eric Whittleton as its new president and chief executive officer. He previously served as ISS' chief operating officer.

In a statement from ISS, the company said prosecutors determined the company should not be charged with any offense.

ISS also has put in place a new governing structure headed by an independent board of directors composed of Dan Bannister, former chairman and CEO of Dyncorp, and retired U.S. Army Gen. John G. Coburn. The company also said it has a compliance program and internal procedures and controls designed to avoid situations where a conflict of interest might arise.

ISS has 1,200 workers in the United States and South Korea. It had 2004 revenue of $231 million. The company ranks No. 45 on Washington Technology's 2005 Top 100 list of the largest federal government contractors.