Former Employee Of Defense Contractor And Wife Sentenced For Conspiring To Obtain Millions In Fraudulent Scheme Involving Vehicle Parts For Afghan National Army
ALEXANDRIA, Va. – Keith Johnson, 46, and his wife, Angela Johnson, 45, of Maryville, Tenn., were sentenced today for conspiring to commit wire fraud. Keith Johnson was sentenced to 30 months in prison, and Angela Johnson was sentenced to serve six months in prison, to be followed by six months of house arrest. Both defendants also were sentenced to two years of supervised release and ordered to forfeit $2,034,684 to the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of the Mid-Atlantic Field Office; John Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement after the pleas were accepted by United States District Judge Leonie M. Brinkema.
According to court documents, Keith Johnson served as the Program Manager for a Department of Defense contractor that operated a Central Maintenance Facility (CMF) in Kabul, Afghanistan and other facilities in that country to maintain and repair vehicles used by the Afghan National Army. In his position during 2007-2008, Keith Johnson was involved in purchasing vehicle parts from vendors.
As part of the scheme, Keith Johnson and his wife, Angela, formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed. Angela Johnson operated the company. When Keith Johnson’s company solicited quotes for different vehicle parts that were needed, Angela Johnson, using her maiden name of “Angela Gregory” to conceal her relationship to Keith Johnson, responded with quotes based on parts that she was able to purchase from other vendors. Keith Johnson used his position as Program Manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotes, and in instances in which there had been competitive quotes, approving recommendations that the awards be made to MLS.
The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to Keith Johnson’s company, to have Keith Johnson similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings. Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor. Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons, so that MLS could win competitions for certain purchase orders. Eisner and Kieffer were sentenced on Dec. 18, 2013 by Judge Brinkema to one year imprisonment and six months imprisonment, respectively.
As a result of the scheme, MLS was awarded more than $11 million worth of purchase orders for vehicle parts by Keith Johnson’s company.
This case was investigated by DCIS, FBI, SIGAR, and Army MPFU. Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section, who also is a Special Assistant U.S. Attorney for the Eastern District of Virginia, are prosecuting the case on behalf of the United States.A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.