Three more sentenced for involvement in federal contract fraud


Three men were handed down prison sentences this week for participating in a scheme to defraud the government of more than $20 million through Army Corps of Engineers contracts, the Justice Department announced Thursday.

Harold Babb, the former director of contracts at Eyak Technology LLC, was sentenced to seven years and three months in prison on federal charges of bribery and unlawful kickbacks, according to a news release.

Babb admitted that he paid Army Corps of Engineers program manager Kerry Khan in return for Khan’s approval on contracts and subcontracts to EyakTek and Big Surf Construction Management, an EyakTek subcontractor, the release said.

James Miller, the owner of Big Surf Construction Management LLC, was sentenced to five years and 10 months in prison, the release said.

Khan also allegedly approved fictitious and fraudulently inflated invoices worth $850,000 submitted by Alpha Technology Group, company president Robert McKinney told the Justice Department. Alpha Technology kept about $246,000, and the rest allegedly was passed on to Khan directly and through a company controlled by one of Khan’s family members, the release said.

McKinney was sentenced to two years and nine months in prison.

Upon completion of their prison terms, Babb, McKinney and Miller will be under supervision for three years.

Twelve people, including Khan, have pled guilty to charges related to the fraudulent use of Army Corps of Engineers contracts, and the investigation is continuing, the release said. Army Corps of Engineers program director Michael Alexander, who also allegedly took bribes from contractors in exchange for access to government contracts, was sentenced in September 2012 to a six-year prison term. The other defendants are awaiting sentencing, the Justice Department said.


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