Government Contracts Monitor

Next Time You Hear Someone Request a “Price Check on Aisle 5,” You’ll Wonder What They’re Really Asking For

November 11, 2013

In a recent criminal case, a former Boeing Procurement Officer and the subcontractors he worked with were charged with mail and wire fraud in connection with the government contracts version of an “insider trading” scheme. In United States v. Anderson, et. al. No. 4:13-CR-403, U.S. District Court for the Eastern District of Missouri, the government alleged that Deon Anderson, Boeing’s former Procurement Officer, gave subcontractors J.L. Manufacturing and Globe Dynamics International non-public competitor bid and historical price information for multiple Boeing military aircraft part purchase orders. The subcontractors allegedly used that information to submit bids to Boeing. J.L. Manufacturing submitted 9 requests for quotes with non-public information and was awarded 7 purchase orders that exceeded $2,000,000. Globe Dynamics International submitted 16 requests for quotes with non-public information and was awarded 7 purchase orders that exceeded $1,500,000.

According to the indictment, the defendants spoke in code, with one subcontractor using the code “price check on aisle 5,” to refer to a request for historical price information and competitor bid information. In exchange for the information, the subcontractors paid Anderson cash and also mailed money orders to him. The indictment contains a forfeiture count that seeks to seize and forfeit approximately $13,000 in cash, and two cars: a 2007 Cadillac Escalade and 2010 Chevrolet Camaro. The cars were seized earlier this year.

So next time you are in the grocery store, and want a price check, make sure you tell the store clerk you are not seeking non-public historical price information and competitor bid information, just the price of a loaf of bread.

 

Brian Stolarz is the attorney responsible for the content of this article.