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Contractors plead guilty to fraud in ANA supplies

Contractors plead guilty to fraud in ANA supplies

Nov 13, 2013 - 11:41

WASHINGTON (PANinfo-icon): A former defence contractor and his wife Tuesday pleaded guilty to the charges of a $9.7 million procurement fraud scheme for the Afghan National Army


Keith Johnson, 46, and Angela Johnson, 44, face a maximum penalty respectively of 20 years and five years in prison when they are sentenced on February 14, 2014, Department of Justice said.

The couple was indicted on July 16 by a federal grand jury over a conspiracy to commit wire fraud and wire fraud charges. Keith Johnson admitted to serving as the programme manager for a Department of Defense contractor.

The contractor operated a central maintenance facility (CMF) in Kabulinfo-icon and other facilities in the country to maintain and repair the vehicles used by the Afghan National Army (ANA). 

During 2007 to 2008, Johnson was involved in purchasing vehicle parts from vendors. The two formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed. 

Angela Johnson operated the company. When it solicited quotations for different vehicle parts, she responded with offers based on parts that she was able to purchase from other vendors, using her maiden name of “Angela Gregory” to conceal her relationship to Keith.

Keith Johnson used his position as programme manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotations. In instances where which there had been competitive quotes, he approved recommendations that the awards be made to MLS.

The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to the company, to get him similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings.

Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor.  Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons so that MLS could win competitions for certain purchase orders. 

Eisner and Kieffer previously pleaded guilty to conspiracy and will be sentenced on December 18, 2013.



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