Ex-U.S. Official Gets 19 Years for Bribery Scheme

Thursday, Jul 11, 2013  |  Updated 2:55 PM EDT
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Ex-U.S. Official Gets 19 Years for Bribery Scheme

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A former employee of the U.S. Army Corps of Engineers has been sentenced to more than 19 years in prison for orchestrating a massive contracting fraud.

Kerry Khan, 55, a former program manager with the government, was sentenced Thursday morning in federal court in Washington.

He pleaded guilty last year to his role in a bribery and kickback scheme that prosecutors say stole more than $30 million through invoices that were either bogus or inflated.

“Kerry Khan was the ringleader of the largest bribery and bid-rigging scheme in the history of federal contracting,” U.S. Attorney Ronald Machen said.  “His corrupt network of public officials and private contractors looted the U.S. Treasury for years.

Khan was paid more than $12 million through the bribery scheme, according to the government. He used the illegal funds on luxuries including Rolex watches, high-end liquor and fancy hotel stays.

Prosecutors asked U.S. District Judge Emmet Sullivan for a 15-year sentence. Sullivan said it was shocking that Khan was caught on a wiretap discussing a planned sexual encounter with a girl described to him as 15 years old. Sullivan also ordered Khan to pay $32.5 million in restitution to the Army Corps of Engineers.

Fifteen people and one company pleaded guilty in the case. Khan was the ninth to be sentenced. Everyone sentenced in the case has received prison terms.

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