Title: Former Government Employee and Government Contractor Indicted in $53 Million Procurement Fraud and Illegal Gratuities Scheme | USAO-MD | Department of Justice
Headings: Former Government Employee and Government Contractor Indicted in $53 Million Procurement Fraud and Illegal Gratuities Scheme
Department of Justice
Former Government Employee and Government Contractor Indicted in $53 Million Procurement Fraud and Illegal Gratuities Scheme
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Content: The indictment alleges that SCSI received approximately $33 million of the $35 million paid to Iron Bow under the various furniture and equipment delivery orders. In late 2010 or early 2011, Wilkerson offered Shank employment. Shank did not disclose that fact to anyone at SPAWAR and did not recuse himself from any of the contracts that benefited Wilkerson. In February 2011, Co-Conspirator 2 left AC4S and went to work for Wilkerson at SCSI. According to the indictment, Co-Conspirator 2 received a $500,000 bonus when he joined SCSI, which was paid for by profit Wilkerson had earned on the furniture contracts. By March 2011, the Air Force project was not complete and there were a number of contract disputes related to the project. Shank was directed not to take any other action related to the project without the approval of a senior manager. Nevertheless, the indictment alleges that in April 2011, Shank accepted more than $3.7 million worth of invoices that benefited SCSI without informing the senior manager. After Shank accepted employment with SCSI in May 2011, but was still working for SPAWAR, he allegedly approved more than $1.1 million worth of invoices that benefitted SCSI and Wilkerson. Shank and Wilkerson face a maximum sentence of 20 years in prison for a wire fraud conspiracy;