Defendants Sentenced in Air Force Contract Fraud Case

SAN ANTONIO – The four remaining defendants in the fraud case involving former Air Force civilian employee Keith Seguin were sentenced this week in a federal court in San Antonio. 

According to court documents, David Joseph Bolduc Jr., 62, of Herndon, Virginia, was the owner and director of operations at QuantaDyn, a software engineering company that worked on Randolph Trainer Development (RTD) simulators at Randolph Air Force Base.  From 2007 through 2018, he and others paid $2,375,725.26 in bribes to Seguin in return for Seguin’s influence in obtaining government contracts and subcontracts for QuantaDyn.  Bolduc was sentenced to 120 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $37,757,713.93 in restitution to the government in addition to a forfeiture of property and $8,750,775.77.

John G. Hancock, 61, of Fairborn, Ohio, was sentenced to 40 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $23,769,884.41 in restitution to the government.  Hancock and co-conspirator Karen K. Paulsen aided Seguin in unlawfully manipulating the award amounts and winners of federal contracts, to corrupt contracting processes, and to defraud the Air Force, General Services Administration (GSA), and companies competing for government contracts.

Paulsen, 59, of Beaver Creek, Ohio, was sentenced for one count of conspiracy, to five years of probation with six months home confinement and 100 hours of community service during each year of probation.  She was also ordered to pay $8,015,860.00 in restitution to the government.

Rubens Wilson Fiuza Lima, 73, of Marietta, Georgia, was sentenced to 27 months in prison and ordered to pay $653,984.20 in restitution to the government for one count of conspiracy.  As a friend of Seguin, Lima took a job as a subcontractor on an RTD contract in Texas, used his business Impex Import Export Inc.  to assist Seguin by disguising the bribe money paid to Seguin as legitimate purchases of supplies and equipment related to flight simulators.

“The sentences handed down in this case send a clear message that corrupt behavior will not be tolerated, especially when it involves the safety and security of our nation’s military,” said U.S. Attorney Jaime Esparza for the Western District of Texas.  “We are grateful for the hard work of our law enforcement partners in uncovering this corruption and holding these co-conspirators accountable.  My office will continue to work tirelessly to protect the integrity of our government contracts, ensuring taxpayer dollars are spent wisely.”

“The successful prosecution and sentencing of additional defendants demonstrate our unrelenting pursuit of justice in the face of complex criminal networks. Each co-conspirator played an active role in facilitating this fraudulent scheme and inflicted significant harm on the integrity of our institutions,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “Our team remains committed to working together to dismantle such schemes and safeguard the interests of our nation.”

“The results of this investigation exemplify the skill, persistence, and professionalism of the special agents, auditors, analysts, and attorneys who worked together to achieve justice and maintain taxpayer confidence in the integrity of the federal procurement system," said Special Agent in Charge Jamie M. Willemin for GSA OIG Southwest and Rocky Mountain Investigations Division. "Their efforts and dedication should be applauded.”

"The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to combating corruption that pollutes the DoD contracting process," said Acting Special Agent in Charge Gregory Shilling for DCIS Southwest Field Office.  "These results are a reflection of the steadfast vigilance of DCIS and our investigative partners to protect against those who seek to fraudulently enrich themselves at the expense of the American taxpayer."

"The sentences reflect the results of the skilled and hard work put forth by all agencies involved," said Special Agent in Charge Blair Holmstrand, Air Force Office of Special Investigations, Procurement Fraud Detachment 3.

"This week’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government," said Special Agent in Charge Larry S. Moreland, of the Department of the Army Criminal Investigation Division’s, Major Procurement Fraud Field Office. 

The GSA OIG; DCIS; AFOSI; Army CID; and IRS-CI investigated the case.

Assistant U.S. Attorneys William Lewis, Kelly Stephenson and Special Assistant U.S. Attorney Jay Porier prosecuted the case.

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