Asem Elgawhary, Kickback Scheme, Maryland 2014

Greenbelt, Maryland – Asem Elgawhary, a 73-year-old former principal vice president of Bechtel Corporation, has been sentenced to 42 months in prison for his role in a multi-million dollar kickback scheme. Elgawhary was also ordered to forfeit $5.2 million in connection with the scheme.

The sentence was handed down by U.S. District Judge Deborah K. Chasanow in federal court. Elgawhary pleaded guilty to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws.

According to court documents, Elgawhary accepted $5.2 million in kickbacks from three power companies to manipulate the competitive bidding process for state-run power contracts in Egypt. The payments were made between 1996 and 2011, while Elgawhary was serving as the general manager of a joint venture operated by Bechtel and an Egyptian utility company.

Elgawhary used the kickback payments to fund his personal expenses and to conceal the scheme, which he attempted to cover up by routing the payments through various off-shore bank accounts and providing false information to his employer and law enforcement officials.

Elgawhary was arrested on November 26, 2013, and was indicted on February 10, 2014. The investigation was conducted by the FBI and the IRS-CI, with assistance from law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia, and Cyprus.

United States Attorney Rod J. Rosenstein praised the work of the FBI and IRS-CI in the investigation, and recognized the significant assistance provided by the Criminal Division’s Office of International Affairs and law enforcement counterparts in several countries.

Asem Elgawhary is a dual U.S. and Egyptian citizen, and was ordered to forfeit $5.2 million in connection with the scheme. The case was prosecuted by Assistant U.S. Attorney David I. Salem and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section.

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