Tenth Defendant Pleads Guilty to Federal Charges in Bribery and Kickback Scheme Involving Government Contracts
Defendant’s Brother and Nephew Earlier Pled Guilty to Charges
Nazim S. Khan, 49, the brother of a former manager with the U.S. Army Corps of Engineers, pled guilty today for his role in a case involving bribery, kickbacks, and federal government contracts, becoming the 10th defendant to plead guilty to charges.
Khan, of Accokeek, Maryland, pled guilty before the Honorable Magistrate Judge John M. Facciola in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit interstate transportation of stolen property. No sentencing date was set. Khan faces up to five years in prison, along with a potential fine and order of restitution. He also has agreed to an order of forfeiture in the amount of $83,403.
The plea was announced by U.S. Attorney Ronald C. Machen, Jr.; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; Rick A. Raven, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The developments come a month after the guilty plea of Nazim Khan’s brother, Kerry F. Khan, a former program manager for the Army Corps of Engineers. Kerry Khan, 54, pled guilty on May 17, 2012, to charges of bribery and conspiracy to commit money laundering in a scheme in which he received or was promised more than $26 million in payments from various contractors who submitted fraudulently inflated invoices to the government. The contracts were awarded through the U.S. Army Corps of Engineers and the Department of the Army.
A third family member, Lee A. Khan, 31, also pled guilty on May 17, 2012. Lee Khan, the son of Kerry Khan and nephew of Nazim Khan, pled guilty to a charge of conspiracy to commit money laundering.
According to a statement of offense signed by Nazim Khan as well as the government, Nazim Khan used KC Builders Custom Homes LLC, a company that he controlled, as a way to channel money to Kerry Khan from another government contractor that was involved in the bribery and kickback scheme. Between May 2007 and March 2008, this contractor, Alpha Technology Group Inc., made about $611,904 in payments intended for Kerry Khan to KC Builders. Of this amount, KC Builders retained $83,403 and paid the rest to Kerry Khan.
In addition to the three Khan family members, others who have pled guilty include Michael A. Alexander, a former program manager with the Army Corps of Engineers; Harold F. Babb, the former director of contracts at Eyak Technology LLC (EyakTek), an Alaska Native-owned small business; Alex Cho, the former chief technology officer of Nova Datacom LLC; Theodoros Hallas, who also worked for Nova Datacom; Robert L. McKinney, the president of Alpha Technology Group Inc.; James Edward Miller, the owner of Big Surf Construction Management LLC; and Nick Park, a former employee of Nova Datacom who later opened his own business, Unisource Enterprise Inc. (UEI).
Source: U.S. Federal Bureau of Investigation
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