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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Conspiracy to Defraud Coalition Munitions Clearance Program

Former Parsons employees Gaines R. Newell, Jr. and Billy Joe Hunt were charged for their roles in a conspiracy to defraud the United States on the U.S. Army Corps of Engineers’ Coalition Munitions Clearance Program (CMCP) in Iraq. According to the government, beginning in March 2006, United Kingdom citizen Ahmed Sarchil Kazzaz and his company, Leadstay Company, paid Newell and Hunt more than $947,500 in unlawful kickbacks in order to obtain CMCP subcontracts. From April 2006 through August 2008, Kazzaz and Leadstay received more than $23 million in subcontracts. Newell and Hunt were charged with conspiracy to commit the federal offenses of kickbacks, wire fraud and mail fraud, and with filing false tax returns. In April 2012, Newell pleaded guilty to one count of conspiracy to commit mail and wire fraud and to pay kickbacks, and one count of subscribing a false tax return. The following month, Hunt pleaded guilty to the same offenses. In October 2012, Hunt was sentenced to 15 months in prison, three years of supervised release, $66,212 in restitution to the Internal Revenue Service (IRS) and forfeiture of $236,472. Newell was sentenced to 27 months in prison, three years of supervised release, $1,102,115 in restitution ($861,027 to the U.S. Army Corps of Engineers and $241,088 to the IRS) and forfeiture of $861,027.

Misconduct Type
Ethics
Enforcement Agency
Multiple Agencies
Contracting Party
Defense - Army
Court Type
Criminal
Disposition
Pleaded Guilty
Date of Charging
9/28/2011
Contractors Involved Penalty
Total
Parsons Corporation $2,265,826
Further Information Released
DOJ Press Release (October 2012) 10/10/2012
DOJ Press Release (March 2012) 3/13/2012
Criminal Informations 9/28/2011

Federal Contractor Misconduct Database