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October 29, 2024Defense and intelligence agencies are among those allegedly defrauded, federal investigators said—adding that more charges may be in store.
The Justice Department charged six people for working to defraud a number of government agencies, including those in the defense and intelligence community, through a series of bidding, kickback and bribery schemes, the agency said Tuesday.
The move is among “the first charges in the Justice Department’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government purchasers including the intelligence community,” Justice said in a statement.
Victor Marquez, who owns two IT companies with sizable government contracts, faces a four-count indictment on charges of wire fraud conspiracy, wire fraud, and major fraud against the U.S. for rigging bids and inflating contract payments. Two others that worked alongside him, Antwann C.K. Rawls — an employee at one of his companies — and Scott Reefe — an IT sales executive — were also charged.
Court documents filed in Maryland alleged the trio exchanged bid information prior to submitting offers, with one emailing that he would file a “high price third bid.” Marquez and his accomplices submitted these coordinated bids in full knowledge that the government sought independent, competitive submissions for the contracts, and in spite of Marquez’s certification of independent bidding, Justice claims.
The government often awards the contract to the lowest reasonable bidder or the one offering the best value, depending on circumstances. In cases of bid rigging or fraud, firms conspire to manipulate the bidding process by coordinating bids to undermine competition and illegally increase their returns. Marquez did not respond to a request for comment.