Drill Ethics Final

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Ethics - Case Studies on Federal Offenses in Acquisition: 

Ethics - Case Studies on Federal Offenses in Acquisition Special Agent Richard Drill Major Procurement Fraud Unit US Army Criminal Investigation (Division) Command

Ethics – General Principals: 

Ethics – General Principals Executive Orders Code of Federal Regulations US Criminal Codes

Basic Concept: 

Basic Concept Do not use public office for private gain Do not give preferential treatment to any private organization or individual

Ethics - Criminal Statues : 

Ethics - Criminal Statues 18 USC 201 – Bribery 18 USC 207 – Post Employment Restrictions 18 USC 208 – Acts Affecting Personal Financial Interest 18 USC 209 – Dual Compensation

Bribery: 

Bribery PARC orchestrates a scheme to solicit hundreds of thousands of dollars in bribes Contractor awarded $25M in contracts despite being high bidder on all awards. Contractor pays PARC over $700,000 for his influence over the contract awards

Department of Justice Press Release 02-103, 3 Jul 02: 

Department of Justice Press Release 02-103, 3 Jul 02 11-count indictment charges Col Richard J. Moran, Commander USA Contracting Command Korea with influencing the award of four contracts in exchange for bribes

Gratuities – Job Offer: 

Gratuities – Job Offer Contractor meets with PO Takes PARC out to dinner and lunches Contractor bids on $50M contract within PO contracting office Contractor is competing against one other contractor and is deemed less technically proficient as well as high bidder PO interviews

Department of Justice Press Release 25 Jul 05: 

Department of Justice Press Release 25 Jul 05 Two Contractor Executives Plead Guilty to conflict of interest charges relating to Illegal job negotiations with a US Army colonel who was commander of contracting for the US Armed Forces in Korea

Bribery and Kickback Scheme: 

Bribery and Kickback Scheme PO and contractor agree to inflate certain line items on contracts (modifications) Contractor submits the inflated contracts to contracting for approval PO uses influence to get contracts approved Contractor splits difference on inflated line items with PO

Department of Justice Press Release 05-484, 19 Sep 05: 

Department of Justice Press Release 05-484, 19 Sep 05 US Army Contracting Director, Two Other Individuals Arrested in Connection with Bribery and Kickback Scheme to pay bribes to a public official and take kickbacks in connection with US Army contracts awarded in an Army recreation facility in Germany

Ethics Related Criminal Cases: 

Ethics Related Criminal Cases Robert Stein LTC Michael Wheeler LTC Harrison Gheevarghese Pappen Kenneth Harvey Jeffery Slayton

What can we do?: 

What can we do? Educate Culture Ask the tough questions Set the example Do the right thing in the face of pressure Enforce Policies REPORT SUSPICIOUS ACTIVITY

Suspicious Activity: 

Suspicious Activity Secrets Release of Procurement Information Who’s side is he on anyway Sudden Interest Pressure

Reporting Suspicious Activity: 

Reporting Suspicious Activity Immediate Supervisor Procurement Fraud Advisor Command Inspector General Hotline 800-424-9098 USACIDC

Slide15: 

Special Agent Richard Drill Major Procurement Fraud Unit US Army Criminal Investigation (Division) Command Richard.Drill@us.army.mil (410) 278-0277 Questions?