Friday, March 25, 2016

OBO's Security Contractor Settles Civil and Criminal Fraud Claims

Add inside info and cash, mix well, enjoy


















That scheme to sell soy protein shakes to embassy construction site security guards which got a couple of my good friends in OBO prosecuted (here) makes more sense now.

Diplopundit has posted news of a settlement between the U.S. government and Coastal International Security, an OBO contractor for site security personnel, in which we learn that the contractor was obtaining inside information on its competitor's bids and pricing at the same time it was helping its OBO program manager - one of the people who oversaw Coastal International Security's contract - to defraud the government in his own, separate, tasty and nutritious conspiracy.

Details are in DOJ's press release, State Department Contractor to Pay $1.65 Million to Resolve Criminal and Civil Fraud Allegations:
Coastal International Security, Inc., based in Upper Marlboro, Maryland, agreed to pay a total of $1.65 million to resolve criminal and civil allegations that the company defrauded the State Department during performance of a security contract and later concealed the fraud from contracting officials, and civil allegations that the company improperly obtained and used competitors’ pricing information to underbid competitors on government task orders.

The government’s investigation focused on the relationship between Marvin Hulsey, a former program manager for Coastal International Security, and Tony Chandler, a former contracting official of the State Department. According to court documents, Hulsey and Chandler conspired together to submit false invoices to the State Department for unallowable costs of nutritional supplements. Chandler, as an authorized distributor of the nutritional supplements, received commissions from the approximate $170,000 in fraudulent nutritional supplement billings. Independent of this scheme, Hulsey admitted to causing approximately $140,000 in additional fraudulent billings through a company owned by his wife.

-- snip --

Coastal International Security simultaneously agreed to pay $1.5 million to resolve civil claims under the False Claims Act for the above conduct, as well as claims under the Procurement Integrity Act arising out of Coastal International Security’s knowledge and use of a competitor’s publicly unavailable bid proposal information. The competitor’s information allegedly enabled Coastal International Security to underbid the competition on bids that Coastal International Security made between Nov. 4, 2008, and Oct. 7, 2011, in connection with various Department of State task orders.

So, Chandler made a comparatively small score by allowing Coastal International Security to bill the government for nutritional supplements that he sold to their employees. Meanwhile, Coastal, which now had a lock on Chandler, used it to obtain inside information with which it could make a much larger score by underbidding its competitors.

The whole story is way more depressing than when I thought it was merely a pyramid scheme run amok.

20 comments:

Anonymous said...

TSB: The birds are with Bernie and Bernie is for the BIRDS!! 26,000 plus today in Portland. Will Bernie go for a 'double birdie' in Seattle? gwb

http://static.seattletimes.com/wp-content/uploads/2016/03/9a99eb928c9644fd952ce5e58d627617-1020x594.jpg

Anonymous said...

https://farm2.staticflickr.com/1584/25746912280_d01cb17487_b.jpg

Bernie can keep filling up sports stadiums 2 or 3 times a week from now til November while Hillary is afraid to be seen in public. gwb

https://palomaimages.washingtonpost.com/pr2/7081fb2c6e98cd4846c2f190e9fac43b-908-681-IMG_2275_tstmp_1458899840.jpg

Anonymous said...

TSB: They were totally unprepared for the caucus turnout today. I was #5 there at 8:30. By 10:00am there were several thousand waiting to get in and only 3 classrooms to put them in. I told em I had to get home to take my insulin and psych meds and they let a bunch of us vote early. It's a landslide for Bernie!! gwb

James said...

It sucks when people you know and like F/U.

TSB said...

James, It's amazing what troubles people make for themselves. Well, it could have been much worse for Mr. Chandler than a six month sentence.

GWB, that Seattle primary looks like the best for Bernie so far. Hillary might have to step up her game.

James said...

Have a good Easter Skep, and you too GWB! As a certified heathen approved by 9 out 10 theologians, I shall play golf.

Anonymous said...

James:For God's sake it's Easter! And once the 'bird of peace' lands on your podium and calls for world peace and $15 bucks an hour that's what Shillary is going to get! gwb
https://www.youtube.com/watch?v=YOA4rAlp6es Bird obviously enjoying speech
https://www.youtube.com/watch?v=nP9BDWAiVuA Watch the kids go nuts!!


TSB said...

Have a good Easter yourself James, on the links or anywhere else. Speaking of Easter and Good Friday, I was amused by the awkward way the U.S. Embassy in Brussels and USG offical spokesmen in general referred to "local holiday" closures in European capitals on Friday and Monday, which have limited news conferences on the Brussels attack. They're collaborating in The War on Easter, apparently.

Anonymous said...

Happy Eastern Easter Skep! You too James! gwb

Anonymous said...

To paraphrase the Skep! The whole story is way more depressing than when I thought it was really an ISIS attack. gwb

Anonymous said...

TSB: Condi Rice tries to cheer up Ukrainians with: "Be glad you're not Liberians. Then you would really be miserable!" 400,000 Ukranians fled to Poland in 2015 trying to find any kind of job as the IMF puts the screws to them. commodity prices up 48% in 2015 plus a 10% cut in pensions leaves you with about enough for 1 Starbucks after you pay the rent and utilities. (Did I mention that the Poles hate the Ukrainians and rob them blind?) gwb

http://www.zerohedge.com/news/2016-03-27/condaleeza-rice-struggling-ukrainians-be-thankful-youre-not-liberia

Anonymous said...

TSB: Michael Lind in:"Can the American Right Renounce Utopianism?" poses a very interesting question and and distills the answer very nicely. (Get with the American people on the main issues.) I don't think he has been listening to C-Span's Washington Journal; The only place you can hear real people expressing their opinions. I would guess 90% of those opinions are just talking points taken from CNN,FOX,NBC and very few of them are even coherent.

There are only two candidates 'listening to the American people'. Trump and Bernie. Neither is right wing or conservative. The rest are all for sale and the people who own them seem to have things well in hand to continue their utopian madness. The one who fits Lind's description of a real conservative is Bernie (sex, social security, overturning foreign governments, religious freedom, immigration). Unfortunately, Hillary has already stolen 3 primaries from him.

But Bernie would handily beat all the Republicans. gwb

Anonymous said...

TSB: I read the Voters Guide for the election. Here is the way it looks: gwb

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/03/28/20160328_vote_0.jpg

Anonymous said...

TSB: Those shots of Christie wolfing down popcorn and M&Ms at the basketball games were hilarious. I forget. Is his campaign suspendered or just bracketed? gwb

Anonymous said...

TSB: re: Metro’s top officials warned Wednesday that the transit system is in such need of repair that they might shut down entire rail lines for as long as six months for maintenance, potentially snarling thousands of daily commutes and worsening congestion in the already traffic-clogged region.

A lot of things come to mind. 1. The $1 billion price tag sounds like pure fantasy given the 'no bid' culture in DC. 2. This might be enough to make Hillary not want to be in the White House for 8 years. 3. President Sanders might decide to move the US Capitol to Burlington and leave all the lobbyists in DC. 3. The Chinese would really get a hoot out of this. Raul Castro might send Obama a couple double decker tour buses as a gift. How is the tax tab for this going to be allocated? gwb

TSB said...

The Metro tax tab is TBD, but the system doesn't support itself with rider fees so they'll be looking for tax money. I just hope the Congress shows some tough love and refuses to pick up the bill.

Anonymous said...

TSB: I admire your calm. Hillary is having a little problem with hers:http://www.weeklystandard.com/article/2001783 Hillary Blows Up at Greenpeace Activist

As Bernie says:"We don't care about your damned emails Hillary,
it's Your Damned Dirty Money!" (So let's debate about it in NYC!) gwb

Anonymous said...

TSB: Just watching Bernie's 15,000 rally in the South Bronx at 10pm Eastern.

Dianne Feinstein Has To Use Google To Look Up Hillary’s Senate Accomplishments

She came up with NOT MUCH!: Clinton has been dogged by her flimsy senate record. She authored only three laws during her Senate stint. The legislation designated a highway, post office and government building in New York. (So, with any luck you should get a new post office, a highway and maybe a new NATO HEADQUARTERS! gwb

Anonymous said...

TSB: A study I read yesterday shows the Clintons have 'raised' $3 billion dollars over the past 40 years since Bill lost his 1st campaign. $2 billion of it went to the party and to charities (roughly) and 1 billion went to the Clinton's. They have personally pocketed $150 million in paid speeches from people who share our/their 'values'. So what's this about kids playing with C-4 on the school bus? gwb

Anonymous said...

TSB: Next week's most eyebrow raising headline could be the Clinton LA fundraiser with a $384,000 dollar minimum. Bernie should hold a fund raising rally simulcast from 5 New York basketball venues with the goal of raising $384,000. He could call it "A Tribute To Hollywood Obscenity" and sew up NY in one night! gwb