Bloomberg News

Army Corps Official to Plead Guilty to Bribery, U.S. Says

February 01, 2012

(Updates with possible penalties in second paragraph.)

Jan. 24 (Bloomberg) -- An Army Corps of Engineers contracting official, Michael A. Alexander, will plead guilty to bribery and conspiracy charges brought in connection with an alleged $20 million false billing scheme, prosecutors said.

The U.S. attorney’s office in Washington, in a federal court filing today, said Alexander will admit to taking bribes and conspiring to launder money. The maximum sentence for bribery is 15 years in prison and the maximum sentence for money laundering conspiracy is 20 years.

Alexander, of Woodbridge, Virginia, was accused along with a colleague, Kerry Khan, of funneling more than $45 million through a contract he was in charge of to a company that kicked back $20 million generated by overbilling. Also charged were Khan’s son and Harold Babb, the director of contracts for Eyak Technology LLC in Dulles, Virginia.

Prosecutors call the case one of the “most brazen” frauds in federal contracting history.

Bill Miller, a spokesman for U.S. Attorney Ronald Machen, declined to comment “because this remains a pending matter.”

Alexander’s lawyer, Christopher Davis, didn’t immediately return an e-mail message seeking comment on the plea.

The case is U.S. v. Khan, 1:11-cr-00276, U.S. District Court, District of Columbia (Washington).

--Editors: Fred Strasser, Glenn Holdcraft

To contact the reporter on this story: Tom Schoenberg in Washington at tschoenberg@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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