Judge Fines Air Force Base Contractor for Fraud

A federal judge fined a Randolph Air Force Base government contractor on Wednesday millions in a bribery and fraud scheme that spanned more than a decade.

U.S. District Judge Fred Biery ordered QuantaDyn Corporation to forfeit nearly $23 million and seized over $7 million in assets, while also placing the company on probation for five years.

William T. Dunn, Jr., the majority owner, President and Chief Executive Officer for QuantaDyn, entered a guilty plea before Judge Biery in connection with the fraud scheme that impacted contract awards worth hundreds of millions of dollars.

In addition, the corporation has agreed to pay a $6.3 million fine and more than $37 million in restitution.

“I am proud that our team and our law-enforcement partners were able to obtain justice for the American taxpayer in this case. We will not tolerate fraud against important federal programs,” said U.S. Attorney John F. Bash in a statement

QuantaDyn was indicted QuantaDyn, along with four others, including San Antonio resident Keith Alan Seguin, who was paid more than $2.3 million in bribes to help steer lucrative government contracts to the company for aircraft and close-air-support training simulators.

“GSA plays a vital role in the government’s ability to procure mission-critical products. Contractors and subcontractors are expected to be honest, transparent, and fair when doing business with the United States. American taxpayers can expect allegations of corrupt business practices to be thoroughly investigated by GSA OIG and its investigative partners to protect the integrity of the procurement process and the mission of our warfighters,” stated GSA-OIG Special Agent in Charge Willemin, Greater Southwest and Rocky Mountain Investigations Division.

.Simultaneous with the corporation entering a guilty plea in the criminal case, the Department of Justice today announced that the United States and QuantaDyn have reached a settlement agreement to resolve civil allegations related to the bribery scheme. QuantaDyn’s agreement to pay $37,757,713.91 in restitution ordered by Judge Biery today will resolve the company’s civil False Claims Act liability for the scheme. Dunn separately paid $500,000 to resolve his personal False Claims Act liability.

Seguin, along with the other four defendants, are charged with one count of conspiracy to defraud the U.S., one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. If convicted, Seguin and the others could face terms of imprisonment up to five years for conspiracy to defraud the U.S., up to 20 years for conspiracy to commit wire fraud, and up to 20 years for conspiracy to commit money laundering. This case is currently scheduled for jury selection and trial on February 1, 2021

Source: https://news4sanantonio.com/news/local/federal-judge-fines-contractor-at-randolph-air-force-base-millions-in-bribery-fraud-case

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