An Army Corps of Engineers fraud case described by prosecutors as one of the largest involving government contracting has seen a break, as a former employee has agreed to plead guilty. Court papers show Michael Alexander plans to plead guilty to bribery and conspiracy to launder money
Alexander and three other men, including another Army Corps of Engineers employee, were indicted in October on charges of participating in a bribery and kickback scheme in the awarding of $20 million in government contracts. The other men have pleaded not guilty. One of those men is Harold Babb a former manager with EyakTek, a Virginia based subsidiary of the Alaska Native Eyak Corporation. Eyak Corporation has not been implicated in any wrongdoing.
Prosecutors say government work was directed to a favored information technology subcontractor in exchange for kickbacks that paid for real estate, fancy clothes and other luxuries.