Bribery Of Federal Contractors Prosecutions
๐ Bribery of Federal Contractors: Legal Framework
What is it?
Bribery of or by federal contractors occurs when a contractor gives, offers, or accepts something of value to influence the awarding, execution, or performance of a federal contract.
Core Laws Used:
18 U.S.C. ยง 201 โ Bribery of public officials and witnesses
18 U.S.C. ยง 371 โ Conspiracy to defraud the United States
18 U.S.C. ยง 666 โ Theft or bribery concerning programs receiving federal funds
Federal Acquisition Regulations (FAR) โ Civil penalties and disqualification rules
False Claims Act (31 U.S.C. ยงยง 3729โ3733) โ Often used in conjunction
๐ Key Prosecution Requirements
To convict someone of bribery under 18 U.S.C. ยง 201, the prosecution must prove:
A thing of value was given or offered;
To a public official or by someone seeking to influence a public official;
With corrupt intent;
To influence an official act (such as awarding or modifying a contract).
๐ Case Law: Detailed Examples
1. United States v. Cisneros (2000)
Court: U.S. District Court for the District of Columbia
Facts:
Henry Cisneros, a former HUD Secretary, was investigated for making payments to a contractor under a false pretext.
Charges:
False statements and conspiracy, with bribery-related elements.
Outcome:
Pled guilty to a misdemeanor, but the investigation brought major attention to contractor-related misconduct.
Significance:
Although not a pure bribery conviction, it highlighted financial misconduct tied to federal officials and contractors.
2. United States v. James H. Holzrichter (2003)
Court: U.S. District Court for the Northern District of Illinois
Facts:
Whistleblower Holzrichter helped expose a multi-million-dollar kickback scheme involving defense contractors and government officials.
Charges:
Bribery, False Claims Act violations.
Outcome:
Settlements and convictions of defense contractors; Holzrichter received a large whistleblower award.
Significance:
Emphasized collusion between contractors and procurement officers, and how whistleblowers play a major role in exposing it.
3. United States v. Brinson (2008)
Court: U.S. District Court for the Middle District of Georgia
Facts:
Brinson, a federal contractor, bribed a Department of Defense official to steer contracts his way.
Charges:
Bribery of a public official, conspiracy, and fraud.
Outcome:
Convicted and sentenced to federal prison.
Significance:
A textbook example of a contractor paying bribes to manipulate the federal procurement process.
4. United States v. George H. Greene (2015)
Court: U.S. District Court for the Northern District of California
Facts:
Greene, an executive at a medical contractor, bribed VA employees to secure favorable treatment for his company.
Charges:
Bribery, honest services fraud, wire fraud.
Outcome:
Guilty plea and sentencing.
Significance:
Demonstrated how bribes to low-level federal employees can still trigger serious felony charges when tied to federal contracting.
5. United States v. Eric Lippert (2019)
Court: U.S. District Court for the Southern District of California
Facts:
Lippert, a Navy official, accepted bribes from a defense contractor (Glenn Defense Marine Asia, aka "Fat Leonard") in exchange for classified information and contract steering.
Charges:
Bribery, conspiracy, fraud.
Outcome:
Convicted; part of a larger scandal involving over two dozen military officials.
Significance:
One of the largest bribery scandals in federal contracting history, showing how systemic contractor corruption can be.
6. United States v. Paul G. Magliocchetti (2010)
Court: U.S. District Court for the Eastern District of Virginia
Facts:
A defense lobbyist and founder of a firm representing military contractors used straw donors and illegal payments to influence politicians and federal procurement decisions.
Charges:
Illegal campaign contributions and bribery.
Outcome:
Convicted and sentenced.
Significance:
Illustrated how indirect payments tied to contract influence can still be prosecuted as bribery and corruption.
7. United States v. Booz Allen Hamilton (Whistleblower Litigation, 2016)
Note: Civil False Claims Act case
Facts:
Accusations that Booz Allen improperly billed the government for work unrelated to federal contracts.
Outcome:
Settlement reached; no criminal conviction, but civil penalties were large.
Significance:
While civil, this case shows how billing fraud and dishonest practices by contractors may lead to criminal investigation if tied to bribery or kickbacks.
๐ง Key Legal Takeaways
Anything of value can be a bribe โ not just cash. Gifts, favors, or insider info count.
Intent to corrupt is essential: honest mistakes or gifts without quid pro quo usually aren't bribery.
Both givers and receivers of bribes can be charged โ contractors and public officials alike.
Whistleblowers play a crucial role in uncovering bribery schemes, especially in large organizations.
Contract suspension or debarment is a common civil consequence for convicted contractors.
Campaign finance and contractor bribery can overlap if payments are made to sway political decision-makers on contracts.
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