Two U.S. Defence Contractors Arrested for Allegedly Bribing Army Employee With $1.25M To Win Hawaii Contracts
Two U.S. Defence Contractors Arrested for Allegedly Bribing Army Employee With $1.25M To Win Hawaii Contracts
The suspects, Leonard Pick, 62, of Palm Beach Shores, Florida, and Brian Kent, 59, of Tampa, Florida, were charged over allegations that they manipulated the procurement process for a Department of War technology innovation laboratory in the Pacific region.
The United States Department of Justice has announced the arrest and indictment of two American defence contractors accused of orchestrating a massive bribery and fraud scheme involving military technology innovation contracts linked to the U.S. Army in Hawaii.
The suspects, Leonard Pick, 62, of Palm Beach Shores, Florida, and Brian Kent, 59, of Tampa, Florida, were charged over allegations that they manipulated the procurement process for a Department of War technology innovation laboratory in the Pacific region.
According to a statement issued on Wednesday by the Justice Department’s Office of Public Affairs, the alleged conspiracy targeted contracts connected to the U.S. Army Pacific Command’s Hawaii-Pacific Innovation Campus, a facility established for testing emerging military technologies.
The indictment, filed in the District of Hawaii on May 14 and unsealed on Wednesday, alleged that the two defendants conspired between January 2021 and October 2022 to bribe a U.S. Army employee with approximately $1.25 million spread over five years.
Prosecutors alleged that the contractors fraudulently inflated government contract costs in order to secretly fund the bribe payments.
The Justice Department further alleged that Kent separately defrauded the government by padding contract expenses with an additional $680,000 routed to his personal consulting business.
According to investigators, the fraudulent activities undermined fair competition within the U.S. military procurement system and diverted taxpayer funds.
“When defence contractors obtain government-funded work through bribery and fraud, they rob our military and the American people of the benefits of a fair, competitive procurement process,” Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department’s Antitrust Division said.
“The Antitrust Division and its partners in the Procurement Collusion Strike Force will vigorously prosecute those that seek to profit at the expense of American taxpayers.”
Acting Director of Criminal Enforcement Paul V. Courtney also condemned the alleged conduct.
“Government contracts must be awarded based on fair competition, not secret bribes hidden in inflated costs,” Courtney said.
“Those who corrupt the procurement process and defraud the American taxpayer should know this: we will find you, prosecute you, and hold you accountable.”
The U.S. Attorney for the District of Hawaii, Ken Sorenson, described the alleged scheme as a direct attack on public trust and honest businesses.
“Corruption in our military procurement processes harms honest companies seeking to compete fairly, steals from our taxpayers, and erodes faith in our government institutions,” Sorenson said.
“We remain committed to holding accountable in federal court any defense contractors who attempt to undermine fair competition through bribery and corrupt practices.”
The Federal Bureau of Investigation also weighed in on the case, describing the alleged conduct as a betrayal of national security interests.
“The defendants used bribery and fraud to obtain significant defense contracts, prioritizing personal profit over national security,” Special Agent in Charge David Porter of the FBI Honolulu Field Office said.
“Let this serve as a clear warning — the FBI and our federal partners will aggressively pursue and hold accountable anyone who attempts to corrupt government procurement processes for personal gain.”
The case is part of broader federal investigations into alleged fraud and collusion within the defense contracting industry in Hawaii.
Investigations are being conducted by multiple U.S. agencies including the Justice Department’s Antitrust Division, the FBI, the Department of the Army Criminal Investigative Division, the Defense Criminal Investigative Service, the U.S. General Services Administration Office of Inspector General and the Naval Criminal Investigative Service.
Pick and Kent were each charged with conspiracy to commit bribery and major fraud against the United States, bribery, major fraud and wire fraud.
Kent faces an additional count of major fraud against the United States.
According to prosecutors, the charges carry severe penalties if convictions are secured.
The conspiracy charge attracts up to five years imprisonment and a $250,000 fine, while bribery carries up to 15 years imprisonment and fines that could reach three times the value of the alleged bribe.
Major fraud against the United States carries up to 10 years imprisonment and a $1million fine, while wire fraud attracts up to 20 years imprisonment.
The Justice Department noted that all defendants remain presumed innocent until proven guilty in court.
