Contractor implicated in bribery scheme

CORRECTION: This article was updated to correct the fact that the indictment does not name Eyak Technology as the recipient of a $780 million contract.

An executive with Eyak Technology is among four men indicted for allegedly being involved in a bribery and kickback scheme, the Associated Press is reporting in the Washington Post.

Harold F. Babb, director of contracts for Eyak, was indicted along with two employees of the U.S. Army Corps of Engineers and the son of one of the Corps employees.

The indictment alleges bribery, conspiracy and unlawful kickbacks valued at $20 million dollars. The two Army Corps employees, identified as Kerry F. Khan, and Michael Alexander, allegedly steered a $780 million contract to a government contractor. Kahn’s son, Lee A. Khan, also was indicted.

An Eyak spokeswoman said the company is cooperating with the investigation.

According to a Justice Department press release, warrants have been obtained to seize funds in 29 bank accounts and to sieze three luxury vehicles and seven high-end watches. Forfeitures procedures also have begun involving 14 properties in Virginia, one in West Virginia and one in Florida.

U.S. Attorney Ronald C. Machen Jr. described the alleged activity as “one of the most brazen corruption schemes in the history of federal contracting.”

Read the indictment here.

Reader Comments

Wed, Oct 5, 2011 QuantumRift AZ

...ah, "boys will be boys".. :(

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