The owner of an Oregon-based defense firm has pleaded guilty on Monday to bribery charges to win over a $171 million business. A prosecutor handling the case confirmed the report.
According to Reuters, the man who owns the firm, who only goes by the name "Sky," pleaded guilty to plying a United States official with cash and meals in Vietnam and Cost Rica as well as funding an Alaska fishing trip. The plea was given in a federal court in Portland, Oregon.
Reports say that Sky was accused of giving gifts to a U.S. Army Corps of Engineers program manager in order to secure government contracts for his firm, which is in Ashland, Oregon. The scheme reportedly took place from year 2002 to 2013 under a "wink-and-a-nod agreement," says Assistant U.S. Attorney Greg Nyhus.
The firm of Sky, called Sky Research Inc. (SRI), provided services to the government for detecting unexploded bombs and other ammunitions. The company was able to receive $77 million by having nine contracts that total to $171 million. Nyhus said that the case, which involves the expectation of tips or donations, is different legally from an outright bribery case. This is because there is evidence of a quid-pro-quo relationship between the involved parties.
According to the courts, one example of the gratuities between Sky and the program manager was when SRI was awarded a $9 million contract for environmental remediation services a day after he paid the manager $3,000. This was back in July 2009. Almost a year after, Sky paid for an Alaska fishing expedition for the program manager and SRI was awarded a $9.9 million contract for military munitions response services.
The Corps of Engineers program manager was identified only as J.H. No charges have been filed against him yet. He oversaw a defense department military munitions program from Omaha, Nebraska.
Thomas O'Hara, an Army Corps spokesman, said in a statement that J.H. was "let go" several years ago and did not comment further, ABC News reported.
Sky faces at most five years in prison and a $250,000 fine.
