USDOJ: Government Contractor Indicted for Bribing Public Official at @USAGM

 

Via DOJ:

A federal grand jury in the Eastern District of Virginia returned an indictment charging a North Carolina man with engaging in a bribery and fraud scheme with a former contracting officer for the Broadcasting Board of Governors (BBG) (now known as the U.S. Agency for Global Media).

According to court documents, William F. Snow, 70, of Jamestown, worked for a government contracting firm that previously provided professional staffing services to BBG. Between late 2014 and late 2016, Snow, in addition to a BBG contracting officer and others, allegedly agreed to hire and pay the contracting officer’s relative for a job involving minimal work and which resulted in payments to the relative that totaled more than $68,000. In exchange, the BBG contracting officer took official actions that benefitted Snow, the contracting firm, and another executive, Rita Starliper, who previously pleaded guilty for her involvement in the scheme. In particular, the contracting officer took official action and provided preferential treatment that included the awarding of a professional staffing contract to the contracting firm that was worth millions of dollars and the steering of the procurement process to benefit Snow, Starliper, and the contracting firm.

Snow is charged with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery, and three counts of honest services mail fraud. The defendant will make his initial court appearance on Dec. 28. If convicted, Snow faces a maximum penalty of five years in prison for conspiracy to commit bribery and honest services mail fraud, fifteen years in prison for bribery, and twenty years in prison for each count of honest services mail fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber of the Eastern District of Virginia; Special Agent in Charge Elisabeth Kaminsky of the Office of Inspector General for the Department of State; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.

The Office of Inspector General for the Department of State and the FBI are investigating the case.

Assistant U.S. Attorney Heidi Boutros Gesch of the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan, and Trial Attorney Jordan Dickson of the Justice Department’s Public Integrity Section are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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SDNY Charges @StateDept Contractor in Multimillion-Dollar Fraud Schemes, Then There’s “Insider-1” at OBO

13 Going on 14 — GFM: https://gofund.me/32671a27

 

On May 28, 2021, USDOJ/Southern District of New York announced the arrest of SINA MOAYEDI, the owner of a construction company on charges of wire fraud, conspiracy to commit wire fraud, and one count of bribery of a public official. According to the announcement, “Sina Moayedi allegedly paid lucrative bribes to a State Department insider in exchange for confidential bidding information, and fraudulently induced the State Department to pay his company approximately $100 million.” Excerpt from the announcement:

Manhattan U.S. Attorney Audrey Strauss said:  “As alleged, Sina Moayedi made misrepresentations about his employees’ qualifications and his company’s ownership in order to induce the State Department into awarding approximately $100 million in lucrative construction contracts to Moayedi’s company, Montage, Inc.  Moayedi also allegedly cultivated a State Department insider, and paid the insider lucrative bribes in exchange for confidential State Department bidding information.  Moayedi must now be held accountable for his alleged brazen fraud on the government.”

Special Agent in Charge Michael Speckhardt said:  “As alleged, the defendant’s scheme to undermine the Department’s procurement process for personal gain caught up with him today and he will now be held accountable.  His alleged actions not only hurt other legitimate businesses competing for awards, but also damage the public’s trust in the effective and efficient utilization of taxpayer money.”

According to allegations in the Complaint[1]:

Montage, Inc. (“Montage”) is a U.S.-based business that is primarily involved in worldwide Government construction projects, including embassies, military posts, consulates, and similar overseas properties owned and operated by the United States Government.  Montage has performed over $220 million in contracting work for the U.S. Government, including for the Department of Defense, the Department of Justice/Federal Bureau of Investigation, the State Department, the Department of the Interior, the Department of Agriculture, the National Aeronautics and Space Administration (“NASA”), the Equal Employment Opportunity Commission (“EEOC”), and the Department of Veterans Affairs.  Since 2014, Montage appears to have focused primarily on competing for and obtaining contracts with the State Department.  During that period, the State Department has awarded Montage approximately six overseas U.S. Embassy/Consulate construction project contracts totaling $100 million, in locales such as Ecuador, Spain, Sudan, the Czech Republic, and Bermuda.  The founder of Montage is SINA MOAYEDI.

Montage engaged in at least two fraud schemes.  The first scheme alleges that, from approximately 2014 to September 2020, MOAYEDI and Montage lied that it was a female-owned business in order to secure unmerited advantages in the bidding process.  By way of context, it is advantageous to a company, when bidding for federal government contracts, to be majority-owned by an individual from a socially or economically disadvantaged community.  In fact, certain contracts (or portions of contracts) are “set aside” for – i.e., only available to – such companies.  MOAYEDI and Montage repeatedly represented falsely in submissions to the State Department that Montage was female-owned, or female-owned and minority-owned, in order falsely to induce the State Department to award Montage lucrative construction contracts.  In actuality, MOAYEDI repeatedly lied about Montage being a female-owned business, and indeed, MOAYEDI controls Montage and makes all material decisions on Montage’s behalf.  As MOAYEDI revealed to a bank that inquired about Montage’s ownership status, “I am the sole owner and president of Montage and have always been.”  Montage and MOAYEDI also repeatedly misrepresented, and significantly overstated, the qualifications of Montage employees.  MOAYEDI made these misrepresentations in order to, among other things, meet State Department and contractual requirements for minimum experience in certain key positions.

The second scheme charged in the Complaint is a bribery scheme during at least 2016 and 2017.  Insider-1 is employed in the State Department’s Overseas Building Operations (“OBO”), which, according to OBO’s website, “directs the worldwide overseas building program for the Department of State and the U.S. Government community serving abroad.”  Specifically, Insider-1 works for the State Department’s OBO Project Development and Coordination Division, European division.  
[…]
MOAYEDI, 66, of Chevy Chase, Maryland, is charged with one count of wire fraud, and one count of conspiracy to commit wire fraud, each of which carries a maximum potential prison sentence of 20 years, and one count of bribery of a public official, which carries a maximum potential prison sentence of 15 years.  
[…]
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.

Download U.S. v Sina Moayedi complaint (21 mag 5598).pdf
Excerpt from complaint:

15. Based on my review of State Department records, I am aware that between approximately 2014 and 2017, Montage was awarded six U.S. embassy/consulate construction projects with the State Department, worth a total of approximately $100 million.
[…]
26. Based on information derived from witness interviews, I reviewed resumes submitted by Montage for various State Department projects. Department requirements referenced in the contract specify certain levels of experience in order to serve as “key personnel” (i.e., personnel whom the State Department has deemed critical to the safe, successful, and timely completion of a project).
[…]
In the course of my review, I identified numerous deficiencies regarding the resumes of key personnel submitted to the State Department for the Guayaquil, Ecuador project.

a. For example, Montage submitted an individual for the key role of Project Controls Engineer and Site Health Project Manager. In the claimed experience for this individual, it stated that he was employed at Montage since 2008 and had “inspected emergency egress and life/safety issues” and conducted “inspections of asbestos containment.” In fact, this individual had only been employed at Montage for approximately one year, and served in an office staff capacity, performing none of those duties.
[…]
[O]ne Montage employee’s resume claimed that he had earned a bachelor’s Degree in Civil Engineering and also claimed years of full-time complex work in the construction field in various capacities over several years. Neither representation was true. In fact, this individual testified at a deposition that they did not graduate; and this individual’s SF-86 security clearance application noted that this individual had actually sold meat as a door-to-door salesman, was a landscaper, and built swimming pools for several years during the period that they had claimed years of full-time complex work in the construction field.
[…]
39. I am aware, from my personal participation, that a judicially authorized search warrant was executed at the residence of Insider-1, on or about May 20, 2021. On that date, Insider-1 was informed, in substance, that she was not in custody, she was free to go, and she was not required to speak with law enforcement agents. She then participated in a voluntary interview with myself and an SDNY Special Agent on her back porch, and she made the following statements, in substance and part:

a. At first, Insider-1 claimed to have sold a large green rug to SINA MOAYEDI, the defendant, for about $60,000, but she said that the payment for the rug came from MOAYEDI’s friend.

Read more here.
The Daily Beast has identified the OBO insider in their May 27 report as well as provided the link to the Salehi Search Warrant; she has not been charged.
The document is 145 pages, the allegations spans many years and the government appears to be looking at multiple embassy projects.  The project in Guayaquil, Ecuador gets top mention. The search warrant executed includes “Records and information relating to forged submittals for the Guayaquil Consulate Project in Ecuador, and other State Department or other Government construction projects” and “Records and information that constitute evidence concerning persons who either (i) collaborated, conspired, or assisted (knowingly or unknowingly) the commission of the criminal activity under investigation; or (ii) communicated with MOAYEDI or other MONTAGE employees about matters relating to the criminal activity under investigation, including records that help reveal their whereabouts.”

Related news:

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US Embassy Santo Domingo: Man Pleads Guilty to One Count of Bribery of a Public Official

On September 14, USDOJ announced that Luis Santos of New Jersey pleaded guilty to bribing a State Department employee.  Santos admitted to paying $2,381 to a U.S. Consular Adjudicator at the U.S. Embassy in Santo Domingo.

Bergen County, New Jersey, Man Admits Bribing State Department Employee

TRENTON, N.J. – A Bergen County, New Jersey, man today admitted giving a bribe to an employee of the U.S. Department of State, U.S. Attorney Craig Carpenito announced.

Luis Santos, 37, of Teaneck, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of bribery of a public official.

According to documents filed in the case and statements made in court:

Santos paid $2,381 to a U.S. Consular Adjudicator in Santo Domingo, Dominican Republic, to favorably handle and review non-immigrant visas, which allowed individuals from the Dominican Republic to apply for entry into the United States.

The bribery charge carries a maximum potential penalty of 15 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 18, 2018.

U.S. Attorney Carpenito credited special agents of the U.S Department of State Diplomatic Security Service with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office, Special Prosecutions Division in Newark.

Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey

*

Based on court filings (PDF), a cooperating witness (“CW”) was employed by the State Department as a U.S Consular Adjudicator in Santo Domingo, Dominican Republic.

2. From on or about September 22, 2017 to on or about March 9, 2018, SANTOS contacted the CW via WhatsApp and solicited the CW to participate in a bribery and fraud scheme, whereby SANTOS would pay money to the CW in exchange for the CW favorably handling and adjudicating fraudulent NIVs.

3. Throughout in or about February 2018, SANTOS sent the CW, via WhatsApp messaging, the names and appointment confirmations for five NIV Applicants, all of whom had interviews scheduled with the U.S. Consulate in Santo Domingo in or about March 2018 ( collectively, the “March Applicants”). SANTOS offered to pay the CW $500 for each fraudulent NIV issued to one of the March Applicants.

4. On or about February 25, 2018, SANTOS and the CW met in Hoboken, New Jersey (the “Hoboken Meeting”). During that meeting, which was consensually recorded by law enforcement, SANTOS confirmed that the March Applicants would pay $1,000 each for their fraudulent NIVs, and that the money would be split three ways, with a portion going to the CW in exchange for the CW favorably reviewing and adjudicating the five NIVs.

5. Law enforcement arranged for the issuance of what appeared to be genuine visas for the March Applicants. Accordingly, when each of the March Applicants appeared for their respective interviews, they were informed that their applications had been approved.

6. On or about March 9, 2018, SANTOS caused a relative in the Dominican Republic to wire $2,380.95 ($2,500 less the transfer service processing fee) to the CW via a money transferring service in exchange for the approval of NIVs for the five March Applicants.

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Binh Tang Vo Gets 8 Years For Conspiring With Former U.S. Consulate Official in Visa Scheme

Posted: 3:42 pm EDT
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We have previously blogged about the Sestak visa scheme in this blog (see Michael T. Sestak Visa Scandal: Two Co-Conspirators Sentenced to 10 Months and 16 MonthsFSO Michael T. Sestak Pleads Guilty in Visa Fraud-Bribery Case, Faces 19-24 Years in Prison). Last month, the Justice Department announced that Binh Tang Vo, a U.S. citizen and one of the alleged conspirators pleaded guilty and was sentenced to eight years in prison plus forfeiture of nearly $5.1 million. Court records indicate that Michaell Sestak’s sentencing had been rescheduled for this month.

Via USDOJ:

Man Sentenced to Eight Years in Prison for Conspiring With Former U.S. Consulate Official in Visa Scheme | Vietnam-Based Scheme Yielded Millions of Dollars in Bribes

WASHINGTON  Binh Tang Vo, 41, an American citizen who had been living in Vietnam, was sentenced today to eight years in prison on charges of conspiracy to commit bribery and visa fraud, bribery of a public official, and conspiracy to commit money laundering, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Bill A. Miller, Director of the U.S. Department of State’s Diplomatic Security Service (DSS).

Vo pled guilty to the charges in March 2015 in the U.S. District Court for the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for a prison sentence between six and eight years, as well as forfeiture of nearly $5.1 million. The Honorable Emmet G. Sullivan accepted the plea agreement and sentenced Vo accordingly today.

Vo was arrested on Sept. 24, 2013, at Washington Dulles International Airport and has been held without bond ever since.

According to a statement of facts in support of his guilty plea, Vo conspired with co-defendant Michael Sestak and others to obtain visas to the United States for Vietnamese citizens.  Sestak was the Non-Immigrant Visa Chief in the Consular Section of the U.S. Consulate in Ho Chi Minh City, Vietnam from August 2010 to September 2012.

As outlined in the statement of facts, Vo and Sestak conspired with other U.S. citizens and Vietnamese citizens to advertise the scheme and recruit customers. Co-conspirators reached out to people in Vietnam and the United States and advertised the scheme by creating a website and by spreading the word through emails and telephone calls.  The conspirators told potential customers that once the customers obtained a visa from the scheme, they could disappear, get married or return to Vietnam and be assured of receiving visas in the future.

Vo and his co-conspirators received biographical information and photographs from customers and assisted them with their visa applications.  Upon submitting an application, the applicant would receive an appointment at the Consulate, be interviewed by Sestak, and approved for a visa. Applicants or their families generally paid between $30,000 and $60,000 per visa.  Nearly 500 fraudulent visas were issued as a result of the conspiracy.

Applicants paid for their visas in Vietnam, or by routing money to co-conspirators in the United States.  Vo admitted to receiving millions of dollars for arranging for Sestak to approve the visas.  He ultimately moved some of the money out of Vietnam by using money launderers to move funds through off-shore banks.  Co-conspirators also had money laundered through off-shore banks to bank accounts in the United States.

“Binh Vo conspired with a corrupt U.S. Consulate Official to collect bribes in exchange for issuing visas that allowed nearly 500 Vietnamese nationals to enter the United States,” said Acting U.S. Attorney Cohen.  “Binh Vo and his family members recruited bribe-paying customers by telling them that once in the United States they could disappear or get married.  He collected millions of dollars in bribes by undermining the integrity of the process used to screen foreign visitors to our country.  This prison sentence demonstrates our commitment to preserving the integrity of a process that is critical to our national security.”

“The U.S. visa is one of the most coveted travel documents in the world. Foreign nationals who acquire visas fraudulently to enter the United States could do so in order to carry out any number of criminal activities, including terrorism,” said Director Miller. “This case demonstrates Diplomatic Security’s unwavering commitment to investigating visa fraud and ensuring that those who commit this crime are brought to justice.”

Sestak, 44, pled guilty in November 2013 to one count each of conspiracy to commit bribery and visa fraud and to defraud the United States, bribery of a public official, and conspiracy to engage in monetary transactions in property derived from illegal activity. He is scheduled to be sentenced July 1, 2015.

Hong Vo, 29, an American citizen, and Truc Thanh Huynh, 31, a Vietnamese citizen, also pled guilty to conspiring with Sestak and Binh Vo.  Hong Vo is Binh Vo’s sister, and Truc Thanh Huynh is Binh Vo’s cousin. Hong Vo was sentenced in March 2014 to seven months in prison and three months of home detention. Truc Tranh Huynh was sentenced in February 2014 to 16 months of incarceration.

According to the statement of facts, fraudulent visas granted by Sestak were connected to an Internet Protocol (“IP”) address controlled by Hong Vo. Huynh allegedly participated in the visa scheme by obtaining documents necessary for the visa applications, collecting money and providing model questions and answers for visa applicants.  Sestak also allegedly approved a visa for Huynh to the United States, the application for which was submitted by the IP address controlled by Hong Vo.

The case was investigated and prosecuted by the U.S. Department of State Diplomatic Security Service and Assistant U.S. Attorneys Brenda J. Johnson, Alessio D. Evangelista of the National Security Section, and Catherine K. Connelly and Jennifer Ambuehl of the Asset Forfeiture and Money Laundering Section, as well former Assistant U.S Attorneys Christopher Kavanaugh, and Mona N. Sahaf.

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