Related Federal Cases
- Kenneth Johnson, Medicare Fraud Scheme, Virginia 2024 · Florida
- Richard N Schott, Healthcare Fraud Scheme, Tennessee 2023 · Virginia
- Monika D. Schorer, Bribery Scheme, Tennessee 2025 · Kansas
- Kanwar Sarabjit Singh, Immigration Fraud Scheme, Virginia 2022 · Washington
- John Davis, Medicare Kickback scheme, Tennessee 2019 · North Carolina
Tennessee Couple Indicted for Warzone Contracting Scheme
ALEXANDRIA, Va. – Keith Johnson, 46, and Angela Johnson, 44, both of Maryville, Tn., were indicted by a federal grand jury on charges of conspiracy to commit wire fraud and substantive wire fraud for their alleged role in a scheme to steer $6.9 million from Department of Defense (DoD) subcontracts in Afghanistan to shell entities through kickbacks and the use of assumed names.
The indictment alleges that the Johnsons, between July 2007 and June 2010, engaged in a scheme to defraud Company #1, a DoD contractor, relating to two contracts worth more than $269 million. The contracts at issue were to provide vehicle-fleet maintenance for the Afghan National Army (ANA). Keith Johnson worked for Company #1 in Kabul, Afghanistan, as its Project Manager and Procurement Manager for the ANA contracts.
According to the indictment, the Johnsons formed Company #4 as a Tennessee corporation, listing Angela Johnson’s mother and daughter on its corporate documents. Keith Johnson used his position in Company #1 to steer parts-supply purchase orders and other business on the ANA contracts to Company #4. To conceal Keith Johnson’s relationship to Company #4, Angela Johnson used her maiden name when interacting with Company #1 on Company #4’s behalf.
The indictment further alleges that the Johnsons agreed with two other individuals at Company #2 to further the scheme. The two Company #2 employees helped steer Company #1 business to the Johnsons through Company #4, and Keith Johnson helped steer Company #1 business to Company #3, an entity operated by the two Company #2 employees using a fictional name. The Company #2 employees allegedly paid kickbacks to the Johnsons through a shell company.
As part of the scheme, the Johnsons allegedly participated in a bid-rigging practice of coordinating inflated bids on behalf of Company #3 or Company #4 to ensure that the other company would receive particular contracts. The conspirators also caused Company #1 to order excess parts that were not yet needed on Company #1’s contracts, and Company #4 did not ultimately supply all parts in compliance with Company #1’s requirements.
The conspirators obtained $6,933,179.31 in proceeds from the scheme, which they used in part to purchase, among other items, several luxury vehicles and more than $191,000 in jewelry. Keith and Angela Johnson face a maximum penalty of 20 years in prison for conspiracy and up to 20 years in prison on each count of wire fraud if convicted.
Key Facts
- State: Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News