The U.S. Justice Department released the below information:
A federal grand jury in the
Western District of Texas returned an indictment charging two South Korean
nationals for their roles in a conspiracy to restrain trade and a scheme to
defraud the United States in connection with operation and maintenance work for
U.S. military installations in South Korea.
According to the indictment, Hyun
Ki Shin and Hyuk Jin Kwon were officers of a South Korean construction company
that performed subcontract work on U.S. military installations in South Korea.
Kwon was also a part owner of the company. Beginning at least as early as
November 2018, Kwon and Shin, along with others, conspired to rig bids and fix
prices for subcontract work, and defrauded the U.S. Department of Defense in
order to obtain millions of dollars in repair and maintenance subcontract work
at U.S military installations in South Korea.
“Bid rigging, price fixing and
fraud are crimes,” said Assistant Attorney General Jonathan Kanter of the
Justice Department’s Antitrust Division. “We will not stand by as criminals
engage in illegal conduct to harm our military instillations overseas.”
“By allegedly rigging bids with
their competitors, the defendants cheated to obtain U.S. Army-funded repair and
construction subcontracts,” said Special Agent-in-Charge Ray Park of the U.S.
Army Criminal Investigation Division’s (Army CID) Major Procurement Fraud Field
Office-Pacific. “U.S Army CID Special Agents remain on guard to investigate and
hold individuals accountable who corrupt the integrity of the Army's
procurement process.”
“The defendants allegedly
conspired to fix prices and rig bids for repair and maintenance work at U.S.
military bases,” said Assistant Director Luis Quesada of the FBI’s Criminal
Investigative Division. “These actions are not only illegal, but they
fundamentally violate the tenets of fair trade. This indictment shows that the
FBI and our law enforcement partners are committed to investigating schemes
intended to defraud others, even those devised on foreign soil.”
The seven-count indictment filed in
the U.S. District Court for the Western District of Texas charges Kwon and Shin
with one count of conspiracy to restrain trade and six counts of wire fraud.
This indictment is the first in an ongoing investigation into bid rigging and
price fixing for operation and maintenance work for U.S. military installations
in South Korea.
The maximum penalty for
conspiracy to restrain trade under the Sherman Antitrust Act is 10 years of
imprisonment and a fine of $1 million. For the wire fraud counts, Kwon and Shin
face a maximum penalty of 20 years in prison and a $250,000 fine. The maximum
fine may be increased to twice the gain derived from the crime, or twice the
loss suffered by victims of the crime, if either of those amounts is greater
than the statutory maximum fine. A federal district court judge will determine
any sentence after considering the U.S. Sentencing Guidelines and other
statutory factors.
The charges are a result of a
federal investigation conducted by the Antitrust Division’s Washington Criminal
II Section, Army CID and the FBI, with assistance from the U.S. Attorney’s
Office for the Western District of Texas.
Anyone with information in
connection with this investigation is urged to call the Antitrust Division’s
Washington Criminal II Section at 202-598-4000 or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department
of Justice created the Procurement Collusion Strike Force (PCSF), a joint law
enforcement effort to combat antitrust crimes and related fraudulent schemes
that impact government procurement, grant and program funding at all levels of
government – federal, state and local. In fall 2020, the Strike Force expanded
its footprint with the launch of PCSF: Global, designed to deter, detect,
investigate and prosecute collusive schemes that target government spending
outside of the United States. To learn more about the PCSF, or to report
information on market allocation, price fixing, bid rigging and other
anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
No comments:
Post a Comment