Maryville, Tennessee Couple Pleads Guilty to Procurement Fraud

December 13, 2013 , by The McKellar Law Firm, PLLC
By The McKellar Law Firm, PLLC on December 13, 2013 10:27 AM |

After five years of using his position as a Department of Defense contractor to scam the U.S. Military, the Afghan National Army, and private vendors, Maryville, Tennessee residents Keith Johnson and his wife, Angela Gregory Johnson pled guilty last month to a nearly $10 million procurement fraud scheme, according to a press release from the Dept. of Justice.

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In statements filed with the U.S. District Court for the Eastern District of Virginia, Keith Johnson and his wife filed fraudulent quotes in order to secure private industry supply contracts for the repair and maintenance of the Afghan National Army's vehicles while employed in Afghanistan. Mr. Johnson, using his position and credentials as a defense contractor, wrote letters to justify illegal purchase orders to receive the needed vehicle parts. Ms. Johnson, using her maiden name, aided in the double dealings by the solicitation of quotes from known venders without the proper recommendations or competitive procedures.

In addition the couple conspired with two additional employees of the central maintenance facility who provided "kickbacks" for the procurement of subsequent vehicle parts that were funneled through their work as subcontractors at the central maintenance facility. All parties concealed their business relationships in order to defraud reputable venders so that all contracts would be awarded to their private companies.

For their fraudulent activities, Mr. Johnson faces a maximum penalty of twenty (20) years in prison and his wife faces a maximum penalty of five (5) years when sentenced on February 14, 2014.