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.