Current and Ex Army Officials and Two Contractors Indicted on Defense Procurement Fraud Charges









Apr 23, 2008, 01:00 ET from U.S. Department of Justice

    ATLANTA, April 23 /PRNewswire-USNewswire/ -- Aaron Terry, 55, of
 Wichita Falls, Texas; Timothy Thomas, 51, of Powder Springs, Georgia; James
 Mcmann, 43, of Kent, Washington; and Eric Auyang, 56, of Mobile, Alabama,
 have been indicted by a federal grand jury in Atlanta on charges of
 conspiracy and major fraud against the United States relating to a defense
 procurement fraud scheme.
 
 
 
     United States Attorney David E. Nahmias said, "The defendants' alleged
 scheme betrayed the public's trust and undermined the fairness of the
 government procurement process. We are committed to maintaining an honest
 and fair system for awarding government contracts, and to rooting out
 corruption in all its forms."
 
 
 
     "Such activity by Army employees or government contractors who work
 with the Army will not be tolerated. We will continue to investigate
 allegations of this nature and do everything in our power to see that
 persons responsible are held accountable and brought to justice," said
 Brigadier General Rodney Johnson, the Commanding General of the U.S. Army
 Criminal Investigation Command (US Army CID).
 
 
 
     Aaron Terry is making an initial appearance in federal court today in
 Tampa, Florida, and Eric Auyang is making an initial appearance in federal
 court today in Mobile, Alabama. The exact time of the hearings has not yet
 been set. The indictment was handed down by the grand jury last week.
 
 
 
     According to Nahmias, the indictment and information presented in
 court: Thomas was a civilian employee of the United States Army Medical
 Command from approximately September 1994 through approximately December
 2001, based at Fort McPherson in Atlanta. Thomas' duties included oversight
 and review of the procurement process of medical facility construction
 contracts. Thomas also oversaw and reviewed the work of United States Army
 Corps of Engineer civilian employee Auyang, who is based in Mobile,
 Alabama. Auyang, who is still a government employee, but faces suspension
 and being placed on administrative leave, was also involved in the
 procurement decision making process.
 
 
 
     Aaron Terry and James Mcmann were the principals in "Global Engineering
 and Construction, Inc." ("Global, Inc."), and "Global Engineering and
 Construction, LLC." ("Global, LLC"). They formed at least two joint venture
 partnerships with other subcontractors to bid on Army medical facility
 construction contracts.
 
 
 
     The indictment alleges that beginning in approximately 1995, the
 defendants secretly agreed to corruptly facilitate and assist Global, Inc.
 in being awarded government medical facility construction contracts. As
 part of the arrangement, Terry allegedly made cash payments to Thomas and
 paid the travel and hotel expenses of both Thomas and Auyang. Both Terry
 and Mcmann allegedly sent gifts to Auyang and Thomas. In return, Auyang
 provided confidential and sensitive government procurement information to
 Terry, which gave Global, Inc. and Global, LLC a competitive advantage in
 the bidding process. On various occasions, Army officials questioned
 Thomas, Terry and Auyang about their financial arrangements, and they
 actively concealed their relationship from Army officials. As a result of
 Thomas' and Auyang's assistance, the government awarded Terry's and
 Mcmann's joint ventures at least four multi-year, multi-million dollar
 construction contracts. At least one of the contracts was valued at over
 $12,000,000.
 
 
 
     The indictment charges two counts: one count of conspiracy to pay and
 receive bribes and to commit major fraud against the United States, and one
 substantive count of major fraud against the United States. The charges
 carry a maximum sentence of 15 years in prison and a fine of up to $10.25
 million. In determining the actual sentence, the Court will consider the
 United States Sentencing Guidelines, which are not binding but provide
 appropriate sentencing ranges for most offenders.
 
 
 
     Members of the public are reminded that the indictment contains only
 allegations. A defendant is presumed innocent of the charges and it will be
 the government's burden to prove a defendant's guilt beyond a reasonable
 doubt at trial.
 
 
 
     This case is being investigated by Special Agents of the U.S. Army
 Criminal Investigation Command and the Defense Contract Audit Agency.
 
 
 
     Assistant United States Attorney David Leta is prosecuting the case.
 
 
 
     For further information please contact David E. Nahmias (pronounced
 NAH-me-us), United States Attorney, or Charysse L. Alexander, Executive
 Assistant United States Attorney, through Patrick Crosby, Public Affairs
 Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address
 for the homepage for the U.S. Attorney's Office for the Northern District
 of Georgia is www.usdoj.gov/usao/gan.
 
 
 
 
 
 
 

SOURCE U.S. Department of Justice
    ATLANTA, April 23 /PRNewswire-USNewswire/ -- Aaron Terry, 55, of
 Wichita Falls, Texas; Timothy Thomas, 51, of Powder Springs, Georgia; James
 Mcmann, 43, of Kent, Washington; and Eric Auyang, 56, of Mobile, Alabama,
 have been indicted by a federal grand jury in Atlanta on charges of
 conspiracy and major fraud against the United States relating to a defense
 procurement fraud scheme.
 
 
 
     United States Attorney David E. Nahmias said, "The defendants' alleged
 scheme betrayed the public's trust and undermined the fairness of the
 government procurement process. We are committed to maintaining an honest
 and fair system for awarding government contracts, and to rooting out
 corruption in all its forms."
 
 
 
     "Such activity by Army employees or government contractors who work
 with the Army will not be tolerated. We will continue to investigate
 allegations of this nature and do everything in our power to see that
 persons responsible are held accountable and brought to justice," said
 Brigadier General Rodney Johnson, the Commanding General of the U.S. Army
 Criminal Investigation Command (US Army CID).
 
 
 
     Aaron Terry is making an initial appearance in federal court today in
 Tampa, Florida, and Eric Auyang is making an initial appearance in federal
 court today in Mobile, Alabama. The exact time of the hearings has not yet
 been set. The indictment was handed down by the grand jury last week.
 
 
 
     According to Nahmias, the indictment and information presented in
 court: Thomas was a civilian employee of the United States Army Medical
 Command from approximately September 1994 through approximately December
 2001, based at Fort McPherson in Atlanta. Thomas' duties included oversight
 and review of the procurement process of medical facility construction
 contracts. Thomas also oversaw and reviewed the work of United States Army
 Corps of Engineer civilian employee Auyang, who is based in Mobile,
 Alabama. Auyang, who is still a government employee, but faces suspension
 and being placed on administrative leave, was also involved in the
 procurement decision making process.
 
 
 
     Aaron Terry and James Mcmann were the principals in "Global Engineering
 and Construction, Inc." ("Global, Inc."), and "Global Engineering and
 Construction, LLC." ("Global, LLC"). They formed at least two joint venture
 partnerships with other subcontractors to bid on Army medical facility
 construction contracts.
 
 
 
     The indictment alleges that beginning in approximately 1995, the
 defendants secretly agreed to corruptly facilitate and assist Global, Inc.
 in being awarded government medical facility construction contracts. As
 part of the arrangement, Terry allegedly made cash payments to Thomas and
 paid the travel and hotel expenses of both Thomas and Auyang. Both Terry
 and Mcmann allegedly sent gifts to Auyang and Thomas. In return, Auyang
 provided confidential and sensitive government procurement information to
 Terry, which gave Global, Inc. and Global, LLC a competitive advantage in
 the bidding process. On various occasions, Army officials questioned
 Thomas, Terry and Auyang about their financial arrangements, and they
 actively concealed their relationship from Army officials. As a result of
 Thomas' and Auyang's assistance, the government awarded Terry's and
 Mcmann's joint ventures at least four multi-year, multi-million dollar
 construction contracts. At least one of the contracts was valued at over
 $12,000,000.
 
 
 
     The indictment charges two counts: one count of conspiracy to pay and
 receive bribes and to commit major fraud against the United States, and one
 substantive count of major fraud against the United States. The charges
 carry a maximum sentence of 15 years in prison and a fine of up to $10.25
 million. In determining the actual sentence, the Court will consider the
 United States Sentencing Guidelines, which are not binding but provide
 appropriate sentencing ranges for most offenders.
 
 
 
     Members of the public are reminded that the indictment contains only
 allegations. A defendant is presumed innocent of the charges and it will be
 the government's burden to prove a defendant's guilt beyond a reasonable
 doubt at trial.
 
 
 
     This case is being investigated by Special Agents of the U.S. Army
 Criminal Investigation Command and the Defense Contract Audit Agency.
 
 
 
     Assistant United States Attorney David Leta is prosecuting the case.
 
 
 
     For further information please contact David E. Nahmias (pronounced
 NAH-me-us), United States Attorney, or Charysse L. Alexander, Executive
 Assistant United States Attorney, through Patrick Crosby, Public Affairs
 Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address
 for the homepage for the U.S. Attorney's Office for the Northern District
 of Georgia is www.usdoj.gov/usao/gan.
 
 
 
 
 
 
 SOURCE U.S. Department of Justice