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Former @StateDept Employee Assigned to PRT Kirkuk Indicted in $2M Government Contract Conspiracy

Posted: 1:50 am EDT

 

On December 18, the USDOJ announced the indictment by a grand jury of former State Department employee, Kenneth Apple, 65, of Beaverton, Oregon, on charges related to his role in allegedly awarding $2 million in micro-dairy contracts from the U.S. government for use in Iraq.

Via DOJ/U.S. Attorney’s Office, Eastern District of Virginia:

According to the indictment, Apple, a former employee with the U.S. Department of State, helped to steer the sole-sourcing of $2 million in micro-dairy contracts to a company in which his son, Jonathan Apple, owned a 50 percent interest.  However, Jonathan Apple and his partner had no technical experience in the industry.  Kenneth Apple conspired to use his official position to pass on non-public information to his son in order to fraudulently award and administer government contracts.  The conspirators further provided false information to, and concealed material details from the U.S. government.

According to the indictment, Kenneth Apple provided templates and technical specifications used in the proposal submitted by Jonathan Apple and his partner to the U.S. government.  In addition, Kenneth Apple caused false and misleading statements to be made to the U.S. government regarding his experience, ownership interest, and the status of the projects.  For example, Kenneth Apple directed a conspirator to keep Jonathan Apple’s name off the company’s website and any ownership documents.  When federal law enforcement agents confronted Kenneth Apple about the scheme, he made false statements, including that he could not recall the owner of the company that won the micro-dairy contracts and that he did not receive any money from the contracts.

Kenneth Apple faces a maximum penalty of 20 years in prison if convicted of wire fraud or obstruction of an official proceeding, and five years in prison if convicted of conspiracy or false statements.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.  Assistant U.S. Attorneys Uzo Asonye and Katherine Wong are prosecuting the case.

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According to court records, Kenneth D. Apple was arrested on December 18 in Oregon.  His defense is currently listed as the Office of the Federal Public Defender in Alexandria, Virginia.

The indictment says that Kenneth D. Apple was a civilian employee with the Department of State assigned to the Kirkuk PRT in Iraq from January 2009 through March 2011 as an agricultural advisor.  Micro-dairy processors are self-contained, mini-factories that are used to process milk into cheese and yogurt.

Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-363.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

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Related items:

News: Micro-dairy plant brings Kirkuk local farmers together | Dvidshub.net (2.21.2011)

Beaverton man indicted in alleged Iraqi contracting fraud | Oregon.live

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