In a recent case, a husband and wife were both sentenced to prison terms for their involvement in a conspiracy to steer military contracts. In United States v. Keith Johnson and Angela Johnson, No. 13-CR-00305 (E.D. Va. indictment filed July 16, 2013), the couple was charged in a conspiracy to commit wire fraud and actual counts of wire fraud in connection with a Vehicle Maintenance Apprenticeship Training contract to provide vehicle fleet maintenance for the Afghan National Army.
Keith Johnson worked as a Project Manager for a defense contractor that received the award for the vehicle maintenance contract. The Johnsons decided to create a company, Military Logistics Support (“MLS”), and Angela Johnson operated the company under her maiden name, Angela Gregory, to keep the last names different. Keith Johnson’s company then solicited quotes for different vehicle parts that were needed, and Angela Johnson, using her maiden name Angela Gregory, responded with quotes on MLS’ behalf. Keith Johnson subsequently directed the awards to MLS. Keith Johnson was also involved in a kickback scheme with another subcontractor, Taurus Holdings, to steer awards to them.
MLS was awarded $11 million worth of purchase orders. The government stated in its Sentencing Memorandum that the Johnsons sent nearly $500,000 to an offshore account in the Jersey Isles, and purchased two BMWs, a Mercedes, and $250,000 in jewelry. The Johnsons also sent money to Angela Johnson’s mother to pay off her mortgage. Additionally, in a colorful email presented to the Court as part of the government’s sentencing presentation, Angela Johnson wrote to one of the Taurus Holdings principals in response to a potential threat regarding disclosure of the MLS arrangement: “As I said, do what u have to do! I have enough documentation on all 4 of y’all. I’m not stupid. I look out for me and my kids.”
Keith Johnson was sentenced to 30 months and Angela Johnson was sentenced to 6 months. A consent order of forfeiture was also entered for $2,034,684.
Brian Stolarz is the attorney responsible for the content of this article.
© Jackson Kelly PLLC 2014