Thursday, April 11, 2019

Man Sentenced in Contract Bribery Case

John and Danielle Kays and Matthew Barrow were classmates at Westpoint. After completing their military service, John and Danielle went on to become civilian employees in the Army Communications-Electronics Command (CECOM) at Aberdeen Proving Grounds where they eventually rose to leadership positions. Barrows meanwhile formed a company called MJ-6.

In 2006, the U.S. Army Contracting Command at Aberdeen awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Mr. and Mrs. Kays were involved in those awards and within two years, were steering work to Barrows and his MJ-6 company in exchange for kickbacks. The couple used their official positions to add MJ-6 as a subcontractor acceptable to the Army, , steer potential employees for Government contractors to work for MJ-6, approve MJ-6 employees to work on various tax orders, approve pay rates, approve status reports, and approve travel reimbursements for MJ-6 employees. Over a six year period, the Kays' steered $21 million in contracts to Barrows and MJ-6. In return, the couple received (at least) $800 thousand.

John and Danielle are currently serving federal prison sentences of six year and eighteen months respectively and the couple also forfeited $1.5 million plus a boat and several vehicles. Matthew Barrows was sentenced today to 30 months in federal prison. The Kays' used the bribes for home renovations, two new automobiles, a powerboat, jewelry, a pool party at their country club, and charges to their credit cards.

No word on how this fraud was uncovered. The full Justice Department press release on the matter can be downloaded here.

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