Two Shady Defense Contractors Busted in Massive Bribery and Fraud Scheme That Ripped Off Taxpayers and Corrupted Critical U.S. Military Tech Innovation Contracts

Soldier in tactical gear with an American flag patch, standing against a backdrop of a helicopter in flight.

Another corruption scandal has erupted inside the federal contracting world.

The Department of Justice announced Wednesday that two Florida defense contractors were arrested and charged in what prosecutors describe as a bribery and major fraud conspiracy that allegedly corrupted the competitive procurement process for a Department of War technology innovation project in the Pacific.

According to the DOJ, Leonard Pick, 62, of Palm Beach Shores, and Brian Kent, 59, of Tampa, allegedly orchestrated a scheme involving bribery, fraudulent contracting practices, and manipulation of the bidding process tied to the U.S. Army Pacific Command’s Hawaii-Pacific Innovation Campus, a project intended to serve as a hub for testing cutting-edge military technologies.

Federal prosecutors say the alleged fraud struck at the heart of America’s defense procurement system.

According to the indictment unsealed this week in the District of Hawaii, these guys allegedly funneled approximately $1.25 million in bribes over five years to a U.S. Army employee while fraudulently jacking up government contracting costs to hide the payoffs.

Kent is also accused of pocketing an extra $680,000 by routing inflated contract funds straight into his personal consulting business.

According to the press release:

The Justice Department announced criminal charges against Leonard Pick, 62, of Palm Beach Shores, Florida, and Brian Kent, 59, of Tampa, Florida, for orchestrating a bribery and major fraud conspiracy that corrupted the competitive procurement process for a Department of War technology innovation lab in the Pacific. The defendants’ alleged conduct specifically affected the construction and operation of the U.S. Army Pacific Command’s Hawaii-Pacific Innovation Campus, which was intended to be a hub for testing new technologies for the Department of War.

The indictment, filed in the District of Hawaii on May 14 and unsealed today, alleges that, from January 2021 to October 2022, Pick and Kent conspired to bribe a U.S. Army employee with approximately $1.25 million over five years and fraudulently inflated government contracting costs to include the U.S. Army employee’s bribe payments. The indictment further alleges that, from approximately September 2020, up to and including October 2022, defendant Kent further defrauded the government by inflating government contract costs to include approximately $680,000 in payments intended for and sent to Kent’s personal consulting business.

“When defense contractors obtain government-funded work through bribery and fraud, they rob our military and the American people of the benefits of a fair, competitive procurement process,” said Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department’s Antitrust Division. “The Antitrust Division and its partners in the Procurement Collusion Strike Force will vigorously prosecute those that seek to profit at the expense of American taxpayers.”

[…]

Defendants Pick and Kent are each charged with one count of conspiracy to commit bribery and major fraud against the United States, one count of bribery, one count of major fraud against the United States, and one count of wire fraud. Kent is also charged with a second count of major fraud against the United States. The maximum penalty for conspiracy to commit bribery and major fraud is five years in prison and a $250,000 fine.

The maximum penalty for bribery is 15 years in prison and a fine of either $250,000 or three times the monetary value of the bribe, whichever is greater. The maximum penalty for major fraud against the United States is 10 years in prison and a $1,000,000 fine. The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.

The fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fines. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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