Yuval Marshak, a former Israel-based defense contractor, has plead guilty to one count of mail fraud, two counts of wire fraud and one count of major fraud against the United States after taking part in several schemes to defraud the U.S. Foreign Military Financing program.
In an indictment returned by a federal grand jury in the District of Connecticut on Jan. 21, 2016, Marshak was charged with carrying out three schemes between 2009 and 2013 to falsify bid documents, win bids under contrived circumstances, and then hide arrangements to receive commissions and have services performed outside the United States, all in violation of the Department of Defense’s rules and regulations.
The undisclosed commission payments were funneled through a Connecticut-based company owned by a close relative to obscure the funds’ final destination.
Following the work of the Israeli government, the DoD and the Office of International Affairs to gather evidence on the scheme, Marshak was extradited from Bulgaria in October 2016 to be prosecuted by the Department of Justice’s Antitrust Division and the Defense Criminal Investigative Service.
Israeli exec disguised bids while defrauding US foreign aid program
