Two senior employees at the U.S. Army Corps of Engineers bilked the government out of $20 million through a “brazen” bribery and kickback scheme, federal prosecutors charged Tuesday afternoon.
Prosecutors identified the mastermind of the scheme as Kerry F. Khan, 53, of Alexandria, Va., a program manager at the Army Corps’ Washington, D.C., headquarters. According to the 42-page indictment, Khan controlled a dizzying array of shell companies, which were used to mask millions of dollars being skimmed off inflated federal contracts paid to a Dulles, Va., technology firm.
Khan, who is charged with bribery, money laundering and wire fraud, pocketed roughly $18 million from the scheme over four years, prosecutors said. He allegedly spent the money on Rolex watches, BMW sports cars, designer clothes, first-class travel and properties around the globe.
The fraud was “staggering in scope,” said Ronald Machen Jr., the U.S. attorney for the District of Columbia, at a news conference announcing the arrests.
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