Guilty Pleas in Government Bribery, Kickbacks Case

A former Army Corps of Engineers employee pleaded guilty to his role in a $30 million bribery and kickback scheme involving the awarding of government contracts.

Kerry F. Khan pleaded guilty Thursday in U.S. District Court in Washington to accepting bribes and money laundering. His son, Lee Khan, also pleaded guilty Thursday.

The Khans and two other men were charged in a complex scheme to defraud the government through inflated invoices and the corrupt steering of contracts.

The scheme went on for years and allegedly involved tens of millions of dollars in kickbacks, News4’s Pat Collins reported. U.S. Attorney Ron Machen said Kerry Khan got cash, home improvements on his properties, expensive cars, Rolex watches and payments to his mistresses in Virginia, Florida and the Philippines.

The two other men, former Army Corps of Engineers employee Michael A. Alexander, and Harold F. Babb, director of contracts at an Alaska Native-owned small business, have pleaded guilty. Several others have been charged.

Machen said the cases against the men were as strong as “you would ever want to see.”