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US: Long prison term in latest extradition case by DOJ’s Antitrust Division

 |  June 20, 2017

On June 12, 2017, a former Israeli executive was sentenced to 30 months in prison and ordered to pay US$41,170 in restitution and US$7,500 as a criminal fine following his recent conviction for defrauding the Foreign Military Financing (FMF) program administered by the US Department of Defense.

The foreign executive is the fifth to be extradited and prosecuted in the United States by the Antitrust Division of the US Department of Justice. The sentence is also the second longest in an extradition case prosecuted by the division to date, following the 63-month sentence imposed last year on a Canadian executive.

On January 21, 2016, an indictment was filed in the District of Connecticut under seal against Yuval Marshak, a former vice president of sales and marketing of an Israeli company and part owner and executive of another company. In July 2016, Marshak was arrested during his travel to Bulgaria and the charges were unsealed.

Marshak remained in custody in a Bulgaria prison pending his extradition proceedings. On October 14, 2016, he was extradited to the United States and was ordered to remain in custody. The division reported that it worked “closely” with the government of Israel on the international case.

On March 13, 2017, Marshak pled guilty to four counts: one count of mail fraud, two counts of wire fraud, and one count of major fraud against the United States. The charges were based on three separate schemes to defraud the foreign aid program. According to DOJ and court documents, “Marshak and others falsified bid documents to make it appear that certain FMF contracts had been competitively bid when they had not.” According to his plea agreement, the loss from the criminal conduct was approximately US$358,027.

Full Content: Department of Justice

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