Six Indicted in Federal Bid-Rigging Schemes Involving Government IT Contracts

Six individuals are facing federal charges following their alleged involvement in bid-rigging and fraud schemes connected to the sale of IT products and services to U.S. government entities, including the Department of Defense (DoD), according to a Department of Justice (DOJ) announcement. The DOJ revealed that the schemes resulted in millions of dollars in overcharges to the government, with charges filed in two separate indictments by a federal grand jury in Baltimore on October 9 and October 16.

These indictments represent a significant step in an ongoing DOJ investigation targeting IT manufacturers, distributors, and resellers who conduct business with federal agencies, including those within the intelligence community. Per DOJ statements, the investigation seeks to root out corruption in federal procurement practices related to technology services.

First Indictment: Allegations of Bid-Rigging and Fraudulent Contracting

The first indictment names Victor M. Marquez, a Maryland resident and owner of two IT companies with substantial government contracts. Marquez, along with his employee Antwann C.K. Rawls and Scott A. Reefe, an IT sales executive, allegedly orchestrated a scheme to rig bids and inflate contract values, reportedly in an effort to secure lucrative government contracts fraudulently.

According to DOJ documents, Marquez and his co-conspirators manipulated the procurement process by using confidential information, such as budgetary details for substantial government IT contracts. This information was allegedly used to craft bids that appeared competitive but were, in reality, predetermined to favor Marquez’s company. Court filings describe how the co-conspirators shared bid details in advance and coordinated to submit intentionally high “third bids” to create the illusion of competition. Marquez’s company then falsely certified its bids as independent, despite this collusion.

If found guilty, Marquez could face up to 20 years in prison for each conspiracy and wire fraud count, along with a 10-year sentence for major fraud, per court records.

Second Indictment: Multi-Million Dollar Fraud and Bribery Scheme

The second indictment involves Maryland resident Breal L. Madison Jr., who stands accused of orchestrating a long-term scheme that defrauded his employer and federal agencies out of over $7 million through fraudulent IT product sales. According to DOJ statements, Madison’s alleged co-conspirators include IT contractor Brandon Scott Glisson and former senior government official Lawrence A. Eady.

Court filings allege that Madison and his accomplices siphoned over $9 million through shell companies under Madison’s control, in part to fund lavish personal expenses. Madison is reported to have spent roughly $630,000 on luxury purchases and bribes to Eady, including items such as a Vanquish VQ58 yacht and a 2020 Lamborghini Huracan. Through these bribes, Madison reportedly ensured additional sales of his products to government agencies.

The indictment states that if convicted, Madison could face up to five years in prison for conspiracy, 15 years for each bribery charge, 20 years for each mail fraud count, and 10 years for each money laundering charge.

Investigation and Prosecution

The DOJ confirmed that this case results from a collaboration between multiple federal agencies, including the Defense Criminal Investigative Service (DCIS), FBI Baltimore Field Office, CIA Office of Inspector General, and NSA Office of Inspector General. The Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys from Maryland are leading the prosecution efforts.

Source: NottingHammd