Two Army contractors have agreed to pay the federal government $1.45 million to settle claims they diverted supply contracts to family and friends.
The Department of Justice announced the settlement with Arlington-based PAE Government Services and RM Asia (HK) Limited on Sept. 11, less than two years after it received guilty pleas from employees of both companies accused in the scheme.
The case revolved around a 2007 contract to PAE to provide vehicle maintenance to the Afghan National Army. PAE would partner with RM Asia to provide vehicle parts. It was later discovered through a whistleblower that PAE program manager Keith Johnson, along with wife Angela Johnson, had created a dummy supply company in which to steer parts purchases.
Johnson also steered contracts to two RM Asia subcontractors he worked with through another dummy company. DOJ officials said at the time of Johnson’s guilty plea that he had received $9.7 million in purchase orders through his company.
Johnson was sentenced in February 2014 to 30 months in prison, while his wife received 6 months in prison, followed by 6 months of house arrest.
“This resolution, following criminal charges that were also brought against the individuals involved, represents the government’s efforts to use all of the criminal and civil tools available to the government to remedy fraudulent conduct,” said U.S. Attorney Dana J. Boente of the Eastern District of Virginia, in a statement.
As a result of his whistleblower lawsuit, former PAE Steven D. Walker will receive $261,000. For more information, read the DOJ’s statement.
