Every day we get e-mails from the U.S. Department of Justice (DOJ), updating us on the legal entanglements of public procurement officials and the contractors they oversee. Here are a few of the more recent updates.

October 8, 2010 -- U.S. Army Major Charles E. Sublett, 46, of Huntsville, Ala., was sentenced to 21 months in prison for making false statements to a federal agency. In addition to his prison term, Sublett was also sentenced to two years of supervised release and was ordered to forfeit $107,900 and 17,120,000 Iraqi dinar. Sublett was deployed to Balad Regional Contracting Center on Logistical Support Area (LSA) Anaconda in Iraq from August 2004 through February 2005. Sublett served as a contracting officer while deployed to LSA Anaconda. As a contracting officer, Sublett was responsible for, among other things, evaluating and supervising contracts with companies that provide goods and services to the U.S. Army. Sublett admitted that he sent a package from Balad, Iraq, to Killeen, Texas, which was seized by U.S. Customs and Border Protection officers in Memphis. Sublett admitted that, on the international air waybill, he falsely described the contents of the package as books, papers, a jewelry box and clothes with a total declared customs value of $140 when, in fact, Sublett knew the package contained $107,900 in U.S. currency and 17,120,000 in Iraqi dinar. Sublett also admitted that he failed to file a currency or monetary instruments transaction report (CMIR) as required by federal law when transporting currency in amounts of more than $10,000 into or out of the United States. During the plea hearing, Sublett admitted to making false claims to investigators regarding his attempt to bring the currency into the United States in an effort to impede their investigation. See the DOJ announcement here.

October 15, 2010 – Osama Esam Saleem Ayesh, 36, a foreign national employed at the U.S. Embassy in Baghdad, Iraq, was charged with theft of public money and acts affecting a personal financial interest in connection with $237,236 in U.S. Government funds. Ayesh was arrested on Aug. 16, 2010, based on a criminal complaint charging him with one count of conflict of interest. Ayesh held the position of shipping and customs supervisor at the U.S. Embassy in Baghdad, where he was responsible for preparing the necessary documents and logistical support for customs clearance and delivery of shipments coming into Iraq for the embassy and embassy officials and personnel. The indictment alleges that, between November 2008 and June 2010, Ayesh fraudulently caused $237,236 in U.S. Government funds, intended for the payment of services provided to the U.S. Embassy pursuant to two Blanket Purchase Agreements (BPAs), to be sent to a bank account in Jordan that he controlled. The indictment further alleges that, between September 2008 and June 2010, Ayesh participated in the creation and operation of BPAs executed by the U.S. Embassy in Baghdad, in which Ayesh knew that he and his wife had a financial interest. The indictment alleges that Ayesh also knew that he and his wife had a financial interest in the instigation of U.S. electronic funds transfers to pay for services rendered under those BPAs.

The theft of public funds counts each carry a maximum of 10 years in prison and a $250,000 fine. The conflict of interest charge carries a maximum of five years in prison and a $250,000 fine. See the DOJ announcement here.

October 4, 2010 – A federal jury convicted computer programmer Rajendrasinh Babubhai Makwana, age 36, of Montgomery County, Maryland, of computer intrusion arising from the transmission of malicious script to Fannie Mae’s computer servers. Makwana was a contractor working at Fannie Mae’s Urbana, Maryland facility from 2006 to October 24, 2008, where he was a UNIX engineer who worked on Fannie Mae’s network of almost 5,000 computer servers. Makwana was fired on October 24, 2008 and told to turn in all of his Fannie Mae equipment, including his laptop. On October 29, 2008, a Fannie Mae senior engineer discovered a malicious script embedded in a routine program. A subsequent analysis of the script, computer logs, Makwana’s laptop and other evidence, revealed that Makwana had transmitted the malicious code on October 24, 2008 which was intended to execute on January 31, 2009. The malicious code was designed to propagate throughout the Fannie Mae network of computers and destroy all data, including financial, securities and mortgage information. Makwana faces a maximum sentence of 10 years in prison. See the DOJ announcement here.

October 12, 2010 – Bristol Alloys, Inc.—and its president, James Bullick (age 42)—pleaded guilty to one count of Major Fraud against the United States government. The defendants fraudulently supplied a Navy subcontractor with metal that did not conform to required military specifications. They also provided counterfeit certifications that showed that the metal had been treated in accordance with contractual requirements when, in fact, no such heat treatment had occurred. The defective metal was used to build Virginia Class submarines. The company faces a maximum possible sentence of five years probation, a $5 million fine, mandatory restitution—and a $400 “special assessment”. Bullick faces a maximum possible sentence of 10 years in prison, a 3-year period of supervised release, a $ million fine, mandatory restitution, and (of course) a $100 “special assessment”. See the DOJ announcement at this site, here.

According to this article at the Hampton Roads PilotOnline news site—

Last month, spokesmen for the Navy and the U.S. attorney's office in Philadelphia declined to say whether any of the metal has been installed in submarines or whether there are safety implications. The Navy has known of the issue since last October, a spokesman said, and has conducted detailed inspections of parts made with Bristol Alloys' materials but would not provide further details.

Notice that these reports were all issued within one two-week period. With the constant stream of news stories like these, it’s no wonder government auditors and law enforcement officials think so many people (and contractors) are crooks.