(Updates with contracting data in sixth paragraph.)
Oct. 14 (Bloomberg) -- A government contractor in suburban Washington was indicted on fraud and conspiracy charges in a case prosecutors said sparked the probe of an alleged $45 million kickback scheme at the Army Corps of Engineers.
Rajesh Kumar Malik, a former vice president of MED Trends Inc., was accused of submitting false statements to federal agencies to win more than $20 million in contracts, according to an indictment unsealed today in U.S. District Court in Washington. Rockville, Maryland-based MED Trends is a health- care information technology consulting firm.
Yesterday, Theodoros Hallas, a former executive of Nova Datacom LLC, a computer services and consulting firm based in Chantilly, Virginia, pleaded guilty in federal court in Washington to one count of conspiracy to commit wire fraud for falsifying information that helped Malik’s company land a $20 million contract with the U.S. Labor Department.
The probe of Malik and Hallas led investigators to uncover the alleged bribery, kickback, and money laundering scheme that resulted in the Oct. 4 arrest of two employees of the U.S. Army Corps of Engineers, Michael A. Alexander and Kerry F. Khan, prosecutors said in an e-mailed statement.
“This case demonstrates our steadfast commitment to root out and prosecute those who commit fraud in our federal contracting process,” said U.S. Attorney Ronald Machen in Washington in an e-mailed statement.
Both companies received an increase in federal contracts in recent years. Med Trends Inc.’s federal contracts totaled $12.2 million in the fiscal year ending Sept. 30, 2010, according to data compiled by Bloomberg Government. That was up from $7.6 million in 2009. Nova Datacom had $17.7 million in fiscal 2010, up from $1.75 million the prior year, the data show.
Hallas’s lawyer, Preston Burton of Poe & Burton PLLC in Washington, declined to comment on the charges.
No one immediately responded to messages seeking comment on the cases left after normal business hours at MED Trends and Nova Datacom.
The Malik case is U.S. v. Malik, 11-268; the Hallas case is U.S. v. Hallas, 11-299; and the Army Corps case is U.S. v. Khan, 11-276, U.S. District Court, District of Columbia (Washington).
--With assistance from Nishad Majmudar in Washington. Editors: Fred Strasser, Glenn Holdcraft
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