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Florida Couple, Procurement Contract Bribery, Florida 2021
A Florida couple who owned a military contracting company pleaded guilty today in federal court in Salt Lake City for their roles in a bribery and fraud scheme involving federal procurement contracts.
Sylvester Zugrav, 70, and his wife Maria Zugrav, 67, both of Sarasota, Florida, pleaded guilty to their involvement in the bribery and fraud scheme that affected the United States Air Force.
Sylvester Zugrav was charged with conspiracy to commit bribery and procurement fraud, while Maria Zugrav was charged with misprision of a felony related to her efforts to conceal the conspiracy.
The indictment against the Zugravs, along with Jose Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, was returned on October 12, 2011.
Mendez pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme. He awaits sentencing.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
Sylvester Zugrav admitted to giving Mendez more than $180,000 in bribe payments and offering him more than $1.05 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO.
In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts, including assisting Atlas in obtaining and maintaining procurement contracts, assisting Atlas in receiving payments on such contracts, and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts.
Maria Zugrav admitted to being aware of Sylvester Zugrav’s bribe payments to Mendez and assisting with the concealment of the crime. She also admitted to limiting cash withdrawals from Atlas’ bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
The plea documents also stated that Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000, and purchased a laptop computer and software package worth over $2,900. He also sent nine FedEx packages to Mendez’s home address, each containing $5,000 in cash, except the last package, containing $3,000, which was seized by law enforcement.
Maria Zugrav assisted her husband by making wire transfers to a bank account in Mexico in the name of Mendez’s cousin, which was used to receive larger bribe payments from Sylvester Zugrav.
The court records also described additional steps taken to conceal the crime, including the use of a foreign bank account and the transfer of funds through wire transfers.
The case is an example of the importance of transparency and accountability in government contracting, and the need for individuals and companies to comply with the laws and regulations governing procurement contracts.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Utah and the Criminal Division of the Justice Department.
The defendants are scheduled to be sentenced on [insert date].
As part of their plea agreements, the defendants have agreed to forfeit the proceeds of their crime, including the $180,000 in bribe payments received by Mendez.
The case is a reminder that bribery and fraud schemes can have serious consequences for individuals and companies involved, and that law enforcement will continue to investigate and prosecute such cases to the fullest extent of the law.
The defendants are: Sylvester Zugrav, 70, and Maria Zugrav, 67, both of Sarasota, Florida.
The charges against the defendants include conspiracy to commit bribery and procurement fraud, and misprision of a felony.
The case is a result of an investigation by the U.S. Air Force Office of Special Investigations and the Federal Bureau of Investigation.
The defendants are scheduled to be sentenced on [insert date].
As part of their plea agreements, the defendants have agreed to forfeit the proceeds of their crime.
The case is a reminder that bribery and fraud schemes can have serious consequences for individuals and companies involved.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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