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11/02/2009Former DoD Employee Sentenced to Jail for Conspiracy, Bribery, and Wire Fraud

On October 28, 2009, former Department of Defense (DoD) employee, Derrick Jackson, was sentenced in U.S. District Court in Scranton, PA, to 60 months imprisonment and 36 months supervised release on multiple counts of Conspiracy, Bribery, Wire Fraud, and Release of Contractor Bid/Proposals Information.  Jackson was also ordered to pay restitution of $80,000 to the U.S. Army and pay a special assessment of $900. 

Previously, on April 8, 2009, Jackson was found guilty of violating 18 U.S.C. 371 (Conspiracy), 18 U.S.C. 201 (Bribery), 18 U.S.C. 1343 (Wire Fraud) and 41 U.S.C. 423(a) & (e) (1) (Release of Contractor Bid/Proposal Information).

This case was initiated based upon information from the Defense Criminal Investigative Service (DCIS) that a former GSA contractor employee at Ft. Belvoir, VA, may have provided bid information to Derrick Jackson, U.S. Army employee, Ft. Belvoir, VA, who then forwarded the bid information to Steve Chung, former General Manager, Computer Giants, a GSA contractor.  At DCIS’s request, investigators in GSA OIG’s National Capital Regional Office provided copies of several task orders issued by GSA to Computer Giants to provide computer related equipment to the U.S. Army at Ft Belvoir, VA, and the Tobyhanna Army Depot, Tobyhanna, PA.

The investigation disclosed that Chung, Jackson, and five other DoD employees from Ft. Belvoir and Tobyhanna Army Depot participated in a scheme in which the DoD employees directed task orders to Chung/Computer Giants in return for money and other items of value. The investigation disclosed Jackson provided Chung with several bids/proposals from competitor companies in order to assist Computer Giants in being awarded government contracts.  Jackson was the last of the co-conspirators to be sentenced. 

The investigation developed no information to suggest that the former GSA contract employee at Ft. Belvoir, VA, was part of this scheme, nor that he was aware that Jackson had provided sensitive contract information to Computer Giants.  The former GSA contractor employee had performed contract support for GSA at Ft. Belvoir and had provided Jackson contract information, including bid or proposal documents, pursuant to the normal course of business because Jackson was the Project Manager and client for the contracts in question.