Keith Johnson, Wire Fraud, Virginia 2014

ALEXANDRIA, Va. – A former defense contractor and his wife have pleaded guilty to conspiring to defraud millions in a scheme involving supplies to the Afghan National Army.

Keith Johnson, 46, and his wife, Angela Johnson, 44, of Maryville, Tennessee, pleaded guilty today to conspiracy to commit wire fraud on February 14, 2014.

The Johnsons, who were indicted on July 16, 2013, face a maximum penalty of 20 years imprisonment and 5 years imprisonment, respectively.

In a statement of facts filed with the plea agreement, Keith Johnson admitted to serving as the Program Manager for a Department of Defense contractor that operated a Central Maintenance Facility (CMF) in Kabul, Afghanistan and other facilities in that country to maintain and repair vehicles used by the Afghan National Army.

Johnson used his position to steer purchase orders for vehicle parts to his wife’s company, Military Logistics Support (MLS), and to other vendors, resulting in at least $9.7 million worth of purchase orders being awarded to MLS.

The scheme involved the Johnsons conspiring with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors, to have Keith Johnson steer purchase orders to their company, Taurus Holdings. Eisner and Kieffer paid kickbacks to the Johnsons and engaged in collusive bidding, allowing MLS to win competitions for certain purchase orders.

The case was investigated by the Defense Criminal Investigative Service (DCIS), the FBI, the Special Inspector General for Afghanistan Reconstruction (SIGAR), and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).

Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section are prosecuting the case on behalf of the United States.

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