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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Conspiracy to Defraud the Government While Overseeing Fuel Deliveries in Afghanistan

A federal grand jury in Virginia indicted James N. Sellman and Wallace A. Ward, former Kellogg Brown and Root, Inc. (KBR) Fuel Section employees, charging them with conspiracy, making a false writing, bribery, and making a false claim to the Department of Defense. Sellman and Ward were assigned to oversee fuel deliveries to Bagram Airfield in Afghanistan under the Logistics Civil Augmentation Program (“LOGCAP”) support contract. The indictment alleges that, between May and September 2006, Sellman and Ward conspired to accept bribes from truck drivers employed by British company Red Star Enterprises Limited in return for falsifying government documents indicating receipt of the fuel and then diverting fuel for sale outside the airfield. According to the indictment, the conspiracy involved over 784,000 gallons of fuel worth more than $2.1 million. On January 25, 2008, Ward pleaded guilty to conspiracy to receive bribes, making false statements and filing false claims. He admitted to joining the conspiracy in August 2006 and receiving bribes from several drivers. In April 2008, Ward was sentenced to 26 months in prison and three years of supervised release. Ward was also ordered to pay $216,000 in restitution to the Defense Energy Support Center headquartered at Fort Belvoir. In May 2008, Sellman was sentenced to 26 months in prison, three years of supervised released, and was ordered to pay $675,000 in restitution to the Defense Energy Support Center.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Defense – Army
Contracting Party
Defense - Army
Court Type
Criminal
Disposition
Pleaded Guilty
Date of Indictment
12/12/2007
Contractors Involved Penalty
Total
KBR $891,000

See also:

Federal Contractor Misconduct Database