{"id":54058,"date":"2023-09-12T19:18:36","date_gmt":"2023-09-13T02:18:36","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=54058"},"modified":"2023-09-12T19:18:36","modified_gmt":"2023-09-13T02:18:36","slug":"korean-based-co-to-pay-9-million-fine-related-to-bid-rigging-at-u-s-military-bases","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=54058","title":{"rendered":"Korean-Based Co. to Pay $9 Million Fine Related to Bid Rigging at U.S. Military Bases"},"content":{"rendered":"
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First guilty plea and sentence in an ongoing investigation into bid rigging and related fraud at U.S. military installations in South Korea<\/em><\/strong><\/div>\n<\/div>\n<\/div>\n
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\"\"J&J Korea Inc. (J&J Korea), a company based in the Republic of Korea (South Korea), was sentenced Tuesday by a federal judge in Austin, Texas, to pay nearly 9 million dollars in a criminal fine and restitution for rigging bids and committing fraud in connection with subcontract work at U.S. military installations in South Korea, officials stated.<\/p>\n

On May 10, J&J Korea Inc. pleaded guilty to one count of wire fraud and conspiracy to restrain trade in the U.S. District Court for the Western District of Texas.<\/p>\n

\u201cToday\u2019s sentencing demonstrates that those who conspire to rig bids to eliminate competition and attempt to defraud the government will be caught and held accountable,\u201d said Special Agent in Charge Michael Curran of the Department of the Army Criminal Investigation Division (CID), Major Procurement Fraud Field Office. \u201cCID will continue to see to it that anyone suspected of contract fraud and corruption is brought to justice.\u201d<\/p>\n

\"\"\u201cThe FBI and its partners vigorously investigate and work to prosecute individuals and entities who conspire to engage in bid rigging,\u201d said Assistant Director\u00a0Luis\u00a0Quesada\u00a0of the FBI\u2019s Criminal Investigative Division. \u201cToday\u2019s sentencing demonstrates the FBI\u2019s dedication and commitment to ensuring that those who defraud the U.S. government and the American people face justice.\u201d<\/p>\n

Based on court filings, J&J Korea and other co-conspirators rigged bids and defrauded the U.S. Department of Defense (DOD) to obtain millions of dollars in repair and maintenance subcontract work at U.S military hospitals in South Korea.<\/p>\n

\"\"The subcontract work is related to a U.S. Army Corps of Engineers (USACE) contract that provides operation and maintenance support services at U.S. military facilities worldwide, including military hospitals in South Korea.<\/p>\n

The USACE contract required the prime contractor to use a competitive bidding process when awarding subcontract work under the contract, but J&J Korea and one of its co-conspirators, another company located in South Korea, agreed to submit rigged bids, thereby ensuring that J&J Korea would win most of the subcontract work in South Korea under the USACE contract.<\/p>\n

The scheme, which ran from at least November 2018 to March 2021, caused the DOD to overpay for J&J Korea\u2019s services in the amount of approximately $3.6 million. The company will pay a $5 million fine and $3.6 million in restitution as part of the sentence.<\/p>\n

\"soldiers<\/a>This guilty plea and sentence are the first in an ongoing investigation into bid rigging and related fraud at U.S. military installations in South Korea.<\/p>\n

In March 2022, two officers of J&J Korea were also indicted by a grand jury<\/a>\u00a0in connection with the same conduct.<\/p>\n

The Antitrust Division\u2019s Washington Criminal II Section, CID and the FBI investigated the case.<\/p>\n

Trial Attorneys Daniel E. Lipton and Daniel P. Chung of the Antitrust Division prosecuted the case with assistance from Assistant United States Attorney Matthew B. Devlin for the Western District of Texas.<\/p>\n

Anyone with information in connection with this investigation, or with information on other market allocation, price fixing, bid rigging and other anticompetitive contact should contact the Procurement Collusion Strike Force at\u00a0www.justice.gov\/procurement-collusion-strike-force<\/a>.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

First guilty plea and sentence in an ongoing investigation into bid rigging and related fraud at U.S. military installations in South Korea J&J Korea Inc. 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