Brother of Former Government Employee Sentenced to Two Years in Prison in Bribery and Kickback Scheme Involving Government Contracts
Defendant’s Brother and Nephew Earlier Pled Guilty to Charges
|U.S. Attorney’s Office December 06, 2012|
WASHINGTON—Nazim S. Khan, 49, the brother of a former program manager with the U.S. Army Corps of Engineers, was sentenced today to two years in prison for his role in a case involving bribery, kickbacks, and federal government contracts.
Khan, of Accokeek, Maryland, pled guilty in June 2012 in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit interstate transportation of stolen property. Upon completion of his prison term, Khan will be placed on three years of supervised release. He also has agreed to an order of forfeiture in the amount of $83,403. Finally, he was ordered to pay, along with two other defendants, a total of $611,904 in restitution.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr.; Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office; Rick A. Raven, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
A total of 12 people have pled guilty to charges in the largest domestic bribery and bid-rigging scheme in the history of federal contracting cases, and Khan was the seventh defendant to be sentenced. All of those sentenced so far have received prison terms. All told, corrupt public officials agreed to steer government contracts from the U.S. Army Corps of Engineers and the U.S Department of the Army in exchange for more than $30 million in bribe and kickback payments. The investigation is continuing.
Nazim Khan is one of three family members charged in the case. His brother, Kerry F. Khan, 54, a former program manager for the Army Corps of Engineers, pled guilty in May 2012 to charges of bribery and conspiracy to commit money laundering in a scheme in which he received or was promised more than $26 million in payments from various contractors who submitted fraudulently inflated invoices to the government. The contracts were awarded through the U.S. Army Corps of Engineers and the Department of the Army. Lee A. Khan, 32, the son of Kerry Khan, also pled guilty in May 2012 to a charge of conspiracy to commit money laundering.
According to a statement of offense signed by Nazim Khan as well as the government, Nazim Khan used KC Builders Custom Homes LLC, a company that he controlled, as a way to channel money to Kerry Khan, from another government contractor that was involved in the bribery and kickback scheme. Between May 2007 and March 2008, this contractor, Alpha Technology Group Inc., made about $611,904 in payments intended for Kerry Khan to KC Builders. Of this amount, KC Builders retained $83,403 and paid the rest to Kerry Khan.
The restitution order calls for Nazim Khan, Kerry Khan, and Robert L. McKinney, the president of Alpha Technology Group Inc., to pay a total of $611,904.
In addition to Nazim Khan, those who have been sentenced include:
- Harold F. Babb, the former director of contracts at Eyak Technology LLC (EyakTek), an Alaska Native-owned small business. He was sentenced in October 2012 to seven years and three months in prison and ordered to pay $9,405,230 in restitution and to forfeit a money judgment of $689,342.
- Michael A. Alexander, a former program manager with the Army Corps of Engineers. He was sentenced in September 2012 to a six-year prison term and ordered to pay $1.25 million in restitution and a $1.25 million forfeiture money judgment.
- James Edward Miller, the owner of Big Surf Construction Management LLC. He was sentenced in October 2012 to five years and 10 months in prison. Miller also was ordered to pay $9,405,230 in restitution and to forfeit a money judgment of $4,055,063 and specific property, including bank account funds, a property in Virginia Beach, three vehicles, and diamond rings and other jewelry.
- Robert L. McKinney, the president of Alpha Technology Group. He was sentenced in October 2012 to two years and nine months in prison. McKinney also was ordered to forfeit $246,000, representing the illegal proceeds he retained from the crime. In addition, he must pay $984,664 in restitution to the federal government.
- Larry G. Corbett, owner of Core Technology LLC and Enterprise Technical Solutions Inc. He was sentenced in November 2012 to two years and three months in prison, ordered to perform 500 hours community service, and ordered to forfeit $290,000.
- Theodoros Hallas, the former Executive Vice President of Operations for Nova Datacom LLC. He was sentenced in November 2012 to one year and three months in prison and ordered to perform 500 hours community service.
Those awaiting sentencing include Kerry Khan; Lee Khan; Alex Cho, the former chief technology officer of Nova Datacom LLC; Nick Park, a former employee of Nova Datacom who later opened his own business, Unisource Enterprise Inc. (UEI); and Oh Sung Kwon, also known as Thomas Kwon, the co-founder and chief executive officer of Avenciatech Inc.
In announcing the sentences, U.S. Attorney Machen, Acting Assistant Director in Charge Smith, Inspector General Gustafson, Special Agent in Charge Craig, Special Agent in Charge Raven, and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency; the Washington Field Office of the Internal Revenue Service-Criminal Investigation; and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.
They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson, Bryan Seeley, and James Smith of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section. Finally, they expressed thanks for assistance provided by former Special Assistant U.S. Attorney Christopher Dana; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Lenisse Edloe, Shanna Hays, Taryn McLaughlin, Sarah Reis, Christopher Samson, and Nicole Wattelet and Legal Assistants Krishawn Graham and Jessica McCormick.