TWO
DEFENDANTS ARRESTED IN BRIBERY, MONEY LAUNDERING CASE RELATED TO DEPARTMENT
OF DEFENSE CONTRACTS IN IRAQ AND KUWAIT
WASHINGTON - A major
in the U.S. Army has been charged with bribery, money laundering and conspiracy
arising out of his service as an Army contracting officer in Kuwait in
2004 and 2005, Assistant Attorney General Alice S. Fisher of the Criminal
Division and Assistant Attorney General Thomas O. Barnett of the Antitrust
Division announced today.
John L. Cockerham, 41, a resident of Fort Sam Houston Army Base in San
Antonio, Texas, was arrested by federal agents Sunday night and charged
by criminal complaint filed in the U.S. District Court in the Western
District of Texas, San Antonio Division. Cockerham's wife, Melissa Cockerham,
40, was also arrested and charged with money laundering and conspiracy.
An initial appearance for the defendants was held today before U.S. Magistrate
Judge Pamela Mathy, and a detention hearing is set for Wednesday, July
25, 2007.
According to the affidavit filed in support of the arrest and search warrants,
beginning in 2005, Major Cockerham began accepting millions of dollars
in bribes from contractors who had Department of Defense contracts in
Iraq and Kuwait that Major Cockerham either awarded to the contractors
or controlled himself. Under the direction of Major Cockerham, Melissa
Cockerham allegedly received millions of dollars in U.S. and foreign currency
from these contractors and deposited the money in bank accounts and safe
deposit boxes in Kuwait and Dubai. Records obtained in the case indicate
that Cockerham may have received up to $9.6 million in bribe payments
from at least eight contractors and he anticipated receiving as much as
$5.4 million more.
Both defendants face up to 20 years in prison and a fine of $500,000 for
the charge of money laundering. The charge of bribery carries a maximum
penalty of 15 years in prison and a fine of $250,000. The conspiracy charge
carries a maximum penalty of five years in prison and a fine of $250,000.
This case is being prosecuted by Trial Attorneys Ann C. Brickley and Richard
B. Evans of the Public Integrity Section, which is headed by Chief William
M. Welch II, and Trial Attorneys Mark Pletcher and Emily Allen of the
National Criminal Enforcement Section of the Antitrust Division, which
is headed by Chief Lisa Phelan.
The case is being investigated by special agents of the Special Inspector
General for Iraq Reconstruction; the Army Criminal Investigation Division,
Defense Criminal Investigative Service; U.S. Immigration and Customs Enforcement
at the Department of Homeland Security; the Federal Bureau of Investigation;
and the Internal Revenue Service - Criminal Investigation Division.
Today's charge is an example of the Department of Justice's commitment
to protect U.S. taxpayers from public procurement fraud through its creation
of the National Procurement Fraud Task Force. The National Procurement
Fraud Initiative announced in October 2006 is designed to promote the
early detection, identification, prevention and prosecution of procurement
fraud associated with the increase in contracting activity for national
security and other government programs.
Anyone with information concerning bid rigging, bribery or other criminal
conduct regarding DOD contracts is urged to call the National Criminal
Enforcement Section of the Antitrust Division at 202-307-6694, or the
Public Integrity Section of the Criminal Division at 202-514-2000.
A complaint is only a charge and is not evidence of guilt. A defendant
is entitled to a fair trial in which it will be the government's burden
to prove guilt beyond a reasonable doubt.
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