Four Men Arrested In The Largest Federal Contracting Scam In U.S. History


Photo: EyakTek/wikipedia commons

Two Army Corps of Engineer employees and two other men are in jail charged with bribery and money laundering over a kickback scheme that netted the group $20 million.According to Business Week the four remain locked up as prosecutors argue they are dangerous flight risks accused of  crimes involving officials who will likely help hide them abroad.

Through a series of work orders and product purchases submitted to Kerry F. Khan an Army Corps program manager, the men were able to secure bloated payments from the government for over four years. The group bought houses, cars, luxury items, and paid-off family members to keep quiet.

Several members of Congress are outraged and insist on a Congressional investigation to understand how the scam could have occurred and what lack of oversight allowed it to go on for so long.

The case centres on advantages given to Alaska Native Corporations in securing hefty federal contracts subcontracted out at phony rates to EyakTek in Anchorage.

The allegations involve blackmail, offshore bank accounts, murder threats, and enough malfeasance to keep an investigatory committee busy for months.

Check out the full story at Business Week.

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