Former Army Corps employee pleads guilty in fraud scheme

Associated PressMay 17, 2012 

WASHINGTON -- A former Army Corps of Engineers employee has pleaded guilty to his role in a $30 million bribery and kickback scheme involving the awarding of government contracts to a subsidiary of an Alaska Native corporation.

Kerry F. Khan pleaded guilty Thursday in U.S. District Court in Washington. His son, Lee Khan, is scheduled to admit guilt later Thursday.

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

The two other men, former Army Corps of Engineers employee Michael A. Alexander and Harold F. Babb, former director of contracts for Native corporation subsidiary Eyak Technology LLC., have pleaded guilty. Several others have been charged in the scheme.

Eyak was the prime contractor for a five-year, $1 billion contract administered by the Army Corps of Engineers.

Khan's lawyer, Jeff Weiner, said his client is remorseful and accepts responsibility.

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