On December 17, a federal grand jury in Baltimore returned a superseding indictment charging Victor Marquez, a Maryland resident and owner of two IT companies, with a scheme to defraud the federal government that included rigging bids for IT contracts and receiving kickbacks in exchange for influence over IT procurements.
The superseding indictment charges Marquez with conspiracy to commit wire fraud, four counts of wire fraud, and major fraud.
As alleged in the superseding indictment, Marquez and his co-conspirators used his access to sensitive procurement information to rig bids for procurements for large U.S. government IT contracts.
Marquez and his co-conspirators concealed his role in the scheme to ensure his continued access to sensitive procurement information, and Marquez received kickbacks for steering procurements to his co-conspirators, who referred to the payments to Marquez as the “Vic tax”.
As a result of the scheme, Marquez obtained over $3.8 million in funds that were built into the government’s purchase price.
James Briar, an IT sales representative, and Robert Fay, an IT sales executive, pleaded guilty in related cases. On August 11, Briar pleaded guilty to conspiracy to pay illegal kickbacks.
On October 1, Fay pleaded guilty to conspiracy to pay illegal kickbacks and to violating the Anti-Kickback Act. Sentencing hearings will be set at a later date. Briar faces a maximum penalty of five years in prison, and Fay faces a maximum penalty of 10 years in prison.
If convicted, Marquez faces maximum penalties of 20 years in prison for each conspiracy and wire fraud count and 10 years in prison for the major fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“As the superseding indictment shows, defendant Victor Marquez and his co-conspirators broke trust with our military and stole millions of dollars from an agency that defends our homeland,” said Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “Two of the defendant’s co-conspirators have already pled guilty, and the Antitrust Division will not rest until Marquez is imprisoned.”
“These bad actors attempted to enrich themselves by using privileged inside access to defraud the federal government,” said U.S Attorney Kelly O. Hayes for the District of Maryland. “This kind of corruption distorts the competitive process, wastes taxpayer dollars, and undermines public trust in government contracting. This office, along with our law-enforcement partners, will continue to pursue and prosecute corruption while holding those accountable who dare to try to steal from our government.”
“The charges announced today should stand as a reminder that those who defraud the Department of Defence will be held accountable for their actions,” said Special Agent in Charge Christopher Dillard of the DoD Office of Inspector General Defence Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “The Defence Criminal Investigative Service is committed to protecting the integrity of the DoD procurement process and will pursue all available remedies to root out fraud.”
“The defendants leveraged personal relationships to make corrupt, under-the-table deals that enriched themselves at the taxpayers’ expense,” said Special Agent in Charge Jimmy Paul of the FBI Baltimore Field Office. “The FBI and our partners will follow every investigative lead to ensure all those cheating the system are brought to justice.”
“Ensuring the integrity of federal contracting is critical for an efficient and effective government,” said Deputy Inspector General Kevin Gerrity of the National Security Agency. “I commend our team, our law enforcement partners, and the Justice Department for their dedication and collaboration.”
