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SALT LAKE CITY — A federal indictment was announced Wednesday against a Boston corporation and three men accused of bribing a military official to gain a $54 million dollar contact in Afghanistan.
The military official allegedly accepted the offer.
The 72-count indictment, which has Utah ties, includes charges of bribing a public official, accepting of a bribe by a public official, money laundering and fraud.
In 2007, the U.S. Army solicited bids for a U.S. contractor to supply and train Afghan troops. The pilot contract was "related to logistics and weapons maintenance support for Afghan commando units," according to the indictment.
AISC won the $54 million contract after Young provided them with protected information about the bidding.
Lt. Col. David Young, 49, with the U.S. Army, oversaw all special operations forces in Afghanistan, according to court records. Prosecutors allege that Young "fraudulently disclosed procurement information about the pilot contract, including bid, proposal and source selection information."
Young, along with Christopher Harris, 48, a civilian contractor in Afghanistan from Lake Havasu, Ariz.; Michael Taylor, 51, president of Boston-based American International Security Corporation; and AISC are each named in the indictment.
AISC won the $54 million contract after Young provided them with protected information about the bidding, including "the government's price estimate, source selection criteria, competing bid information, and other confidential procurement information," the indictment states.
Harris was paid about $17.4 million by Taylor and AISC, according to court records, and Taylor received $1.7 million by AISC. Young is accused of instructing Harris to use $7.8 million of the money he was given to pay nominee entities and individuals controlled by Young.
Harris tried to hide his proceeds by structuring his transactions at America First Credit Union in St. George.
"A 'nominee entity' is an entity typically used to hide and conceal illegal financial or other transactions for the benefit of an individual," according to court records.
Harris tried to hide his proceeds by structuring his transactions at America First Credit Union in St. George so he wouldn't be detected by the bank's warning mechanisms, the indictment states.
Included in the indictment is a notice of intent by the government to seize property acquired due to the illegal deal — including about 20 homes and other property in Utah, Florida, Arizona and New Hampshire, as well as gold coins, a boat, a plane, a Hummer and a Jaguar.
Harris was arrested in Salt Lake City in July. An initial hearing was held and he was released pending his next court hearing. Summons will be issued for the other defendants.
The bribery charges carry a maximum penalty of 15 years, the wire fraud counts each carry possible 30-year sentences, and money laundering up to 20 years.
