Federal authorities in Washington, D.C., say they have broken up “one of the most brazen” schemes in federal contracting history, reports the Washington Post. A team of savvy contractors and government employees allegedly inflated invoices by $20 million, approved them, and split the proceeds. Millions of dollars in kickbacks were allegedly paid to federal contractors and U.S. Army Corps of Engineers contracting officers.
They lived large — on the taxpayers' dollar. Porsches, real estate, flat-screen televisions, and Cartier watches. When the contract was running out, a second scheme was hatched but it ended with the October arrests of four men, including two federal employees, on bribery and money-laundering charges. The crime went undetected by regulators until authorities came across it while investigating an unrelated fraud.