Eric D. Price, 58, of Fayetteville, North Carolina, is staring down federal prison time after a grand jury indicted him on charges tied to a $400,000 ‘no show’ job scam rooted in military contracts at Aberdeen Proving Ground. Price faces conspiracy to defraud the United States and multiple counts of wire fraud for allegedly pocketing more than $100,000 in salary while doing zero work for defense subcontractor MJ-6, LLC.
The scheme traces back to March 2006, when the U.S. Army Contracting Command at APG awarded a massive 10-year, $19.2 billion contract to seven prime contractors. Task Orders 11, 77, and 115 were carved out under that umbrella, with civilian Army employee John Kays wielding influence over the work. Kays allegedly steered Task Orders 77, 11, and 115 to MJ-6, a company owned by Matthew Barrow, who formed it with his wife in Ohio in 2008 specifically to land military subcontracts.
According to the seven-count indictment, Kays and Barrow cut a backroom deal to add Price to MJ-6’s payroll under the false pretense that he would support Kays’ work. Price, based in Fayetteville, supposedly worked remotely. But from February 2010 through February 2012, he billed over $400,000 in services to the prime contractor — passing the tab straight to U.S. taxpayers — while delivering nothing. Price allegedly submitted fake status reports and invoices to keep the scam alive. Kays signed off on every fraudulent charge.
Price now faces up to 5 years behind bars for conspiracy and 20 years for each wire fraud count. No initial appearance has been scheduled. The DOJ reminds the public that an indictment is not a conviction — Price is presumed innocent until proven guilty in court.
This case is part of a broader bribery ring already collapsing under federal pressure. Matthew Barrow pleaded guilty to paying John Kays and his wife, Danielle Kays — also a government official — approximately $800,000 in bribes, including $500,000 in cold cash. John Kays admitted to accepting those bribes and is set for sentencing on April 3, 2018, before Judge Catherine C. Blake. Barrow’s sentencing is scheduled for April 20 before Judge George L. Russell, III. Danielle Kays is already serving an 18-month sentence after pleading guilty to conspiracy and bribery.
All three — John Kays, Danielle Kays, and Matthew Barrow — were West Point graduates and classmates. Their fall from military prestige to federal corruption defendants underscores rot in the defense contracting pipeline. The National Procurement Fraud Task Force, formed in 2006 to root out schemes like this, continues to investigate. The FBI, Defense Criminal Investigative Service, and Army CID are leading the probe, with support from U.S. Attorney Stephen M. Schenning’s office in Maryland.
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Key Facts
- State: Maryland
- Agency: DOJ USAO
- Category: Public Corruption
- Source: Official Source ↗
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