U.S. Bureaucrat Gets Two Decades in Prison for Scam of “Historic Proportions”


Kerry Khan, a former Army Corps of Engineers manager, inflated government contracts by millions of dollars and then shook down contractors for the proceeds, says the Washington Post. The money funded a lavish and sordid lifestyle, including a real estate empire in Northern Virginia, leased BMWs, Neiman Marcus shopping sprees, and mistresses in three states and the Philippines.

Yesterday, a judge sentenced Khan, mastermind of a contracting scam of “historic proportions,” to nearly two decades behind bars. It was more than prosecutors requested because of the “staggering” scope of the scheme. U.S. District Judge Emmet Sullivan said he wants to deter other would-be criminals in the billion-dollar world of federal contracting. The continuing investigation has led to admissions of guilt from more than a dozen people, including Khan's brother and son. When Khan was arrested in 2011, he had been paid more than $12 million in kickbacks and was owed more than $14 million from two subcontractors.

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