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Subcontractor indicted in Army Corps contracting fraud case

Jan. 27, 2012 - 06:00AM   |  
By SARAH CHACKO   |   Comments
(Courtesy of Wikipedia)

A subcontractor tied to a brazen federal contracting fraud case has been charged with bribery by the Justice Department, according to court documents.

Robert McKinney, president of Alpha Technology Group in Waldorf, Md., allegedly inflated costs on Army Corps of Engineers contracts by more than $850,000, according to charges filed this week in the U.S. District Court for the District of Columbia. Of that, McKinney allegedly paid more than $600,000 to former Army Corps of Engineers program manager Kerry Khan, according to the court documents.

Khan and former Army Corps of Engineers program director Michael Alexander">were arrested by FBI agents in October on federal charges that they conspired since 2007 with an official at Virginia-based EyakTek, an Alaska Native-owned information technology small business, to funnel more than $45 million in payments to an unnamed EyakTek subcontractor.

EyakTek contracts director Harold Babb, who has since been fired, and Khan's son Lee also were indicted in October, and the investigation is ongoing, officials said Friday.

Alexander, who also allegedly received some of the money McKinney paid Khan, has agreed to plead guilty to bribery and conspiracy to launder money in the case, according to court documents filed Tuesday.

McKinney is charged with allegedly paying Khan to direct Army Corps contracts for project management services to his company since 2006, according to court documents. Khan then allegedly directed EyakTek to award subcontracts to Alpha Technology Group and shared kickbacks with Alexander, according to court documents.

If convicted, McKinney could face up to 15 years in prison and possible fines.

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