- The Washington Times - Tuesday, November 25, 2014

A Virginia-based company with defense and intelligence agency contracts paid a $300,000 fine Tuesday and its former president pleaded guilty to paying bribes to an Army procurement official who was recently sent to prison for taking kickbacks.

The U.S. attorney’s office in Washington announced the deals weeks after filing two criminal counts against Intelligent Decisions Inc., accusing the company of providing golf outings, meals, entertainment and a vehicle worth more than $30,000 to former Army contracting official In Seon Lim, who was sentenced last month to four years in prison.

The company’s former chief executive, Harry Martin, resigned recently in a move the company said involved “violations” that occurred five years ago.

U.S. Attorney Ron Machen said in a statement Tuesday that Martin became the 20th person in what federal authorities have called the largest bid-rigging scheme in federal contracting history.

“This CEO and his company rigged the competition for military contracts by plying an Army official with meals, drinks, entertainment, and golf outings,” Mr. Machen said.

The company paid $300,000 under a deferred prosecution agreement that will result in the dismissal of criminal charges if Intelligent Decisions beefs up its internal controls and abides by other conditions over the next 24 months.

The kickback scheme came to light in a bigger bid-rigging investigation at the Army Corps of Engineers, where one program manager, Kerry Kahn, oversaw a $30 million bribery scheme. Khan is serving 17 years in prison.

It’s unclear whether Intelligent Decisions could lose out on future government contracts because of the charges.

The company has been ranked by the Washington Business Journal as one of the area’s fastest-growing firms, but it announced a leadership shake-up in recent days.

In a previous statement, officials said the company had cooperated with the Justice Department.

 

Former chief executive Harry Martin “took the initiative” to report “improper gratuities” paid to a former Defense Department official, the company said. It didn’t identify Lim. But the former Army official is mentioned by name in charging documents against Intelligent Decisions.

 

“Although these violations occurred five years ago, Intelligent Decisions views any failure to conduct our business according to the strictest legal and ethical standards as a serious matter,” newly named Chief Executive Joe Armstrong, who was previously the firm’s top financial officer, said in a statement to The Washington Times last month.

 

“We have learned a great deal from this experience, and we are focused now on moving forward and delivering exceptional service and support to our valued clients,” Mr. Armstrong said.

 

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