http://www.sigar.mil/investigations/criminalcases/index.aspx?SSR=3&SubSSR=20&WP=Criminal%20Cases
Recent Criminal Cases
| Subject | Action | Investigative Activity |
|---|---|---|
| Supreme Logistics FZE | $25 Million Civil Settlement | On December 5, 2014, a settlement agreement was entered into between the United States, acting through the U.S. Department of Justice and the United States Attorney’s Office for the Southern District of Illinois on behalf of U.S. Transportation Command (USTRANSCOM) and Supreme Logistics FZE (Supreme), a third-party logistics provider for international transport of goods. According to the terms and conditions of the agreement, Supreme will pay $25 million to the United States. An investigation was initiated because of allegations made against Supreme pertaining to the transportation of cargo to and from Afghanistan. Evidence revealed that Supreme submitted false claims causing the prime contractors to overcharge the U.S. government for refrigerated containers when using dry good containers. Additionally, Supreme split shipments and then charged the U.S. government for excess transportation costs; diverted containers to less expensive routes without adjusting invoice costs and charged the U.S. government for container shipping costs when the containers were never shipped. |
| Supreme Site Services Gmbh | $20 Million Civil Settlement | On December 8, 2014, in the Eastern District of Virginia, Supreme Site Services Gmbh (Supreme) agreed to pay $20 million to settle allegations of over-billing for fuel purchased by the Defense Logistics Agency (DLA) at KAF under the NATO Basic Ordering Agreement. The case involved drivers employed by Supreme who stole fuel destined for KAF generators. An investigation was initiated upon receipt of information from Task Force 2010, Kandahar Detachment (TF2010 KAF) that an employee of Supreme had reported a significant amount of diesel fuel was being pilfered by Supreme drivers and later sold to customers at various locations on KAF. The investigation focused on calculating the amount of fuel delivered to the generators at KAF by Supreme during a specific period. Supreme delivery tickets were compared to historical consumption data maintained on computers housed within the generators on KAF. Investigative analysis revealed Supreme billed for more fuel than was delivered as evidenced by the generators and their burn capacity. The difference between the amount of fuel actually delivered and what Supreme billed for was calculated and used as a basis for the loss. |
| Maersk Line, Limited | $8.7 Million Civil Settlement | On October 30, 2014, a settlement agreement was entered into between the United States, acting through the U.S. Department of Justice on behalf of DOD, USTRANSCOM, and Maersk Line, Limited (Maersk), a global transportation and logistics company. According to the terms and conditions of the agreement, Maersk will pay $8.7 million to the United States for an alleged failure of performance associated with a USTRANSCOM contract and alleged noncompliant shipments to military outposts in Afghanistan. In April 2012, SIGAR and the International Contract Corruption Task Force(ICCTF) initiated an investigation at Camp Leatherneck (CLN), Afghanistan, after information surfaced regarding the theft of 38 shipping containers and their contents from CLN and Forward Operating Base (FOB) Shindand in Afghanistan. The containers belonged to American President Lines, LTD (APL) and Maersk. The investigation revealed there were numerous false proof of delivery (POD) documents associated with each missing container, which allowed the contractors to be paid as if the containers reached their ultimate destination. The investigation discovered numerous other missing containers belonging to APL and that Maersk may have had falsified PODs submitted for various locations throughout Afghanistan. In August 2012, the investigation of the container theft was combined with an ongoing civil investigation being conducted jointly by the U.S. Army Criminal Investigation Command (CID), U.S, Air Force Office of Special Investigations (AFOSI), and Defense Criminal Investigative Services (DCIS) in the Southern District of Illinois for the purpose of settlement negotiations with APL and Maersk. As previously reported, in January 2013, a settlement agreement was entered into between the United States, USTRANSCOM, and APL. As a result of the settlement APL paid $4.25 million to the United States government. |
| Unity Logistics and Supply Services | $806,000 Recovery | On October 04, 2014, Defense Finance and Accounting Services (DFAS) notified SIGAR that DFAS completed an $806,672 debt collection process with an Afghan company, Unity Logistics and Supply Services (Unity), and collected the full amount of debt pursuant to a recent investigation. The investigation was initiated in November 2012 when the Kandahar Airfield (KAF) U.S. Army Regional Support Group reported that Unity was drawing fuel from the KAF fuel depot based upon U.S. government contracts that did not allow access to fuel. The investigation uncovered that Unity contractors had misappropriated U.S. government fuel and meal cards at KAF by using letters of authorization relative to a contract at another base as credentials. A search warrant of the Unity office at KAF discovered 72 improperly issued meal cards and ten improperly issued fuel cards. Based on the findings, the estimated potential loss to the U.S. government is nearly $1 million. On October 20, 2013, the Regional Contracting Center-South issued Unity a Debt Collection Demand Letter to remit $806,672 to the U.S. government, pursuant to the investigation. The debt collection process continued until September 2014 when the complete debt of $806,672 was finally collected. |
| Awrish Builders | $403,000 Savings | On November 26, 2014, a determination was made to deny payment to an Afghan construction company because of falsified invoices, representing a savings of over $403,000 to the U.S. government. In January 2011, USACE awarded a $12.7 million contract to Awrish Builders to build troop housing at KAF. The contract was later terminated for convenience by USACE. After the contract was terminated, Defense Contract Audit Agency (DCAA) discovered two identical invoices reflecting two different dollar amounts. In February 2014, DCAA contacted the U.S. Army CID Major Procurement Fraud Unit (MPFU) assigned to KAF regarding the invoices discovered in their audit. MPFU notified the ICCTF and SIGAR agreed to assist with the investigation. Based on the findings of the investigation and the DCAA audit, the USACE contracting officer made the determination it would not pay the questionable invoices. |
| U. S. Army Specialist Alexander Swim | Conviction | On October 6, 2014, in the Eastern District of North Carolina, U.S. Army Specialist, Alexander Swim pled guilty to theft and conversion of public property and aiding and abetting. In addition, Swim will be subject to forfeiture of assets. From January until October 2012, Swim was deployed to Afghanistan under the Combined Joint Special Operations Task Force (CJSOTF) at FOB Sharana. Swim served as an advanced operating base mechanic with responsibility for overseeing the maintenance of vehicles and the distribution of fuel to special operations forces. On multiple occasions during his deployment, Swim participated in a conspiracy to steal government-appropriated fuel from FOB Sharana by escorting Afghan national-operated fuel trucks onto the installation to be loaded with fuel, and then escorting them back off the base. Because of Swim’s actions, the U.S. government suffered a loss of over $400,000 in stolen fuel. Swim is scheduled to be sentenced on January 6, 2015. |
| U.S. Army Sergeant First Class Cleo Autry; U.S. Army Sergeant First Class Jeffrey Arthur Cook; U.S. Army Sergeant First Class Deric Harper | Conviction | On October 6, 2014, in the Eastern District of North Carolina, U.S. Army Sergeant First Class (SFC) Cleo Autry, SFC Deric Harper, and SFC Jeffrey Arthur Cook each pled guilty to one count of theft of government property and conspiracy. Between October 2008 and April 2012, the subjects of the investigation were deployed with the Special Forces Group under the CJSOTF at FOB Jalalabad in Afghanistan. During their deployment, they conspired to embezzle funds from the Commanders Emergency Response Program and from funds used by Special Forces Groups to support counter-terrorism operations. Over time, they stole cash, purchased a substantial number of $1,000 money orders, and sent the funds to their spouses, to electronic bank accounts, or to various vendors. The three individuals are scheduled to be sentenced in January 2015. |
| Enmanuel Lugo | Conviction | On November 19, 2014, in the Eastern District of North Carolina, Enmanuel Lugo pled guilty to charges of bribery and conspiracy pertaining to his involvement in a theft scheme to sell government-appropriated fuel in July 2011. On October 22, 2014, Enmanuel Lugo relinquished $28,700 in U.S. currency to federal agents during a formal proffer session conducted at the offices of the Department of Justice in Washington, DC. According to Lugo, these funds were part of the proceeds gained from his illegal activities. The money was transported by SIGAR and FBI agents to a local bank where it was exchanged for a cashier's check made payable to the U.S. Marshal's Service. The investigation was based on allegations that Lugo and co-conspirators collaborated to falsify Transportation Movement Requests (TMRs) to facilitate the theft of fuel at KAF that they sold on the black market in neighboring towns in return for cash payments. The overall loss to the U.S. government because of this illegal scheme is approximately $10 million. |
| BNN Logistics | $10 Million Savings | On October 4, 2014, the Bagram Airfield (BAF) Contracting Officer reported that a SIGAR investigation resulted in a cost saving to the U.S. government of $10 million. The savings related to two contracts with BNN Logistics (BNN), a large-scale Afghan trucking company that transports bulk material for the U.S. government at BAF. During the summer of 2013, CENTCOM Joint Theater Support Contracting Command (C-JTSCC) ordered that all TMRs be administratively closed for work not performed on contracts. Since the work was no longer needed, no payment was made to the contractors. Aperiod of time was allocated for the contractors to submit their TMRs for work performed on contracts prior to the C-JTSCC order. C-JTSCC had a meeting to explain this process and subsequently BNN submitted TMRs for administrative closure during the allocated time in 2013. During August 2014, BNN submitted two binders of TMRs to the C-JTSCC for payment, some of which were similar to the ones BNN submitted for closure in 2013. SIGAR explained to BNN that it was suspicious that BNN submitted TMRs approximately a year after the C-JTSCC order, and at a time when new Contracting Officer's Representatives (CORs) were in a transition period. SIGAR recommended that BNN contact the COR to discuss what charges to the government would be acceptable for their work not previously reimbursed and then adjust the TMRs accordingly. BNN and the COR came to a mutual agreement and subsequently BNN resubmitted TMRs at a significantly lower rate. |
| Robert Bertolini | Sentencing | On December 15, 2014, in the District of Arizona, Robert Bertolini was sentenced to three months of imprisonment followed by seven months of home detention, three years of probation upon release, and forfeiture of $59,975 to the U.S. government. In July 2014, Bertolini, a former employee of Lakeshore Engineering Services, Inc. (LES), a subsidiary of Lakeshore Toltest Corporation, pled guilty to one count of conspiracy to commit wire fraud and receive an illegal kickback. In December 2010, USACE awarded a contract to LES to design and construct FOB Rocco for the ANA in Kabul, Afghanistan. LES hired Bertolini to be the FOB Rocco project manager and in March 2011, LES contracted with Shams Group International (Shams) to provide materials, labor, and other services. In May 2011, without approval from LES, Bertolini approved two modifications to Shams’ contract, increasing its value by over $1 million. Following the approval, Shams wired approximately $59,975 to a bank account owned by Bertolini's son in Ohio. Bertolini will report to the Bureau of Prisons on February 10, 2015. |
| George E . Green | Indictment | On December 16, 2014, in the Eastern District of Texas, George E. Green was arrested subsequent to a five count federal indictment for violations of conspiracy to commit wire fraud and structuring financial transactions. The investigation was initiated after USAID received allegations that Green, an employee of International Relief Development (IRD), had solicited and received kickbacks in exchange for contract awards for the USAID Southern Regional Agriculture Development (SRAD) program, with a contract value of $65 million. An Afghan employee of IRD wired $20,000 to Green’s U.S. bank account and several Afghan contractors wired $25,000 to Green’s bank account and to an antique auto dealer in Italy. Green bought $16,000 in jewelry in Dubai as a means to launder money and he arranged for his wife to transport over $30,000 to the United States from Italy upon her return from their vacation together. |
| Timothy Maurer | Conviction | On December 12, 2014, in the Northern District of Illinois, Timothy Maurer, a former Raytheon employee, pled guilty to a criminal information charging him with theft of government property. The investigation was initiated following reports of systemic theft of U.S. government-owned computer equipment at Shindand Air Base during 2013 and 2014. Evidence revealed that Maurer shipped 11 packages containing stolen computer equipment to individuals residing in the U.S. who were later determined to be eBay re-sellers. Maurer admitted to stealing over $200,000 worth of equipment. |
| U.S. Army Staff Sergeant Luis Casellas | Arrest and Indictment | On December 3, 2014, in the District of Puerto Rico, U.S. Army Staff Sergeant Luis Casellas was indicted on charges of bulk cash smuggling, false statements, theft of government property, smuggling goods into the U.S., and wire fraud. Casellas was arrested on December 4, 2014, with assistance from a FBI SWAT Team. On August 16, 2013, at the Customs and Border Protection (CBP) United Parcel Service (UPS) hub facility in Louisville, Kentucky, CBP officers interdicted $41,750 from a parcel originating from KAF, Afghanistan. The parcel was sent by Casellas to his spouse in Puerto Rico. On August 21, 2013, CBP interdicted a second parcel sent by Casellas with an additional $20,800 concealed in equipment items contained inside. The investigation uncovered that the equipment was stolen property belonging to the U.S. Military Logistics Civil Augmentation Program (LOGCAP) in Afghanistan. In September 2013, FBI San Juan, Puerto Rico, responded to the law offices of a private attorney representing an anonymous source who wanted to turn in $46,500 in abandoned currency and items from Afghanistan. Upon recovering the abandoned cash and items from the attorney, the FBI discovered the tools were marked with LOGCAP numbers and passed the information onto agents at KAF. The items were stolen U.S. government- owned property and the theft was traced back to Casellas. In addition to stealing approximately $115,000 in currency and materials, Casellas received Overseas Housing Allowance payments from the Army as he fraudulently claimed he was paying rent and utilities for a residence owned by his wife. The fraud constitutes a $96,950 loss to the U.S. government. |
| $103,000 Recovery | On February 14, 2014, ATL, a National Afghan Trucking (NAT) carrier, while hauling an armored pickup truck from Camp Phoenix, Kabul, to Gardez, Paktiya, was detained at a National Directorate of Security (NDS) checkpoint. NDS officials seized the truck after discovering the carrier did not have an armor license. Immediate efforts by the transportation company, the U.S. Army, and SIGAR, to take back possession of the vehicle were unproductive. The vehicle was eventually located at the Kabul NDS logistics compound. After traveling to the compound and meeting with NDS officials on several occasions, SIGAR arranged for NDS to release the truck to a U.S. military contractor, SEK. On November 6, 2014, the truck, valued at $103,000, was released by NDS, and SEK took possession of it for return to its rightful owner. | |
| U.S. Army Staff Sergeant Edward McElveen | Military Member Discharged | U.S. Army Staff Sergeant Charles Edward McElveen was discharged from the U.S. Army under Chapter 10 of the Uniform Code of Military Justice in lieu of trial by court martial. McElveen was discharged “other than honorable” from the military for the sale and distribution of alcohol while deployed to Afghanistan from 2012 until 2013. McElveen also faces suspension and debarment proceedings. The investigation was initiated upon receipt of allegations that Crystal Construction Company (CCC) filed false claims in connection with a contract to deliver 450 Alaska barriers to FOB Salerno during 2012. Additional information surfaced involving McElveen, the COR on the contract, who allegedly received kickbacks and wired the proceeds to family members in the United States. The investigation uncovered that McElveen and Desean Denny, a private contractor working at FOB Salerno, wired thousands of dollars back to the United States while in Afghanistan. McElveen and Denny were interviewed and both confessed to the smuggling and distribution of alcohol while stationed at FOB Salerno. However, there was no evidence of kickbacks in connection to the CCC contract. Denny was terminated and suspension and debarment proceedings are pending. McElveen returned to the United States to face court martial proceedings involving the smuggling and distribution of alcohol. |
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