Tuesday, January 3, 2012

December 30 Government Contracts



FOR RELEASE AT
5 p.m. ET
No. 1052-11
December 30, 2011


CONTRACTS
MISSILE DEFENSE AGENCY
            The Missile Defense Agency is announcing the award of the Ground-based Midcourse Defense (GMD) Development and Sustainment Contract (DSC) to The Boeing Co., Missile Defense Systems, Huntsville, Ala.  The total value of this contract is $3,480,000,000.  This contract was competitively awarded following the receipt of two proposals.  The scope of work under this contract includes, but is not limited to:  future development; fielding; test; systems engineering, integration and configuration management; equipment manufacturing and refurbishment; training; and operations and sustainment support for the GMD Weapon System and associated support facilities.  Work will be performed at multiple locations, including:  Huntsville, Ala.;  Fort Greely, Alaska;  Vandenberg Air Force Base, Calif.;  Schriever Air Force Base, Peterson Air Force Base, Cheyenne Mountain Air Station, and Colorado Springs, Colo.; Tucson, Ariz.; other government designated sites and other contractor designated prime, subcontractor, and supplier operating locations.  The DSC period of performance is seven years; December 2011 through December 2018.  Fiscal 2012 research, development, test and evaluation funds will be used to initially fund efforts under the DSC.  The Missile Defense Agency, Redstone Arsenal, Ala., is the contracting activity (HQ0147-12-C-0004).
            Lockheed Martin Space Systems Co., Sunnyvale, Calif., is being awarded a sole-source letter contract at a total not-to-exceed price of $1,960,000,000 to supply two Terminal High Altitude Area Defense Weapon Systems and provide support services under a Foreign Military Sale to the United Arab Emirates.  Work will be managed in Sunnyvale, Calif., with final assembly performed in Troy, Ala.  Performance extends from Dec. 30, 2011 through June 30, 2016.  The Missile Defense Agency, Huntsville, Ala., is the contracting activity.
            Raytheon Co., Integrated Defense Systems, Woburn, Mass., is being awarded a sole-source letter contract, with a not-to-exceed value of $582,516,377, as an undefinitized contract action (UCA) to provide two AN/TPY-2 radars for a Foreign Military Sales (FMS) case with the United Arab Emirates (UAE).  Work will be performed in Woburn, Mass.  The period of performance is Dec. 30, 2011 through Sept. 30, 2018.  UAE FMS funds in the amount of $582,516,377 will be used to fund this effort.  Definitization of the UCA is anticipated in June 2012.   The Missile Defense Agency, Huntsville, Ala., is the contracting activity (HQ0147-12-C-0005).
            Raytheon Co., Integrated Defense Systems, Woburn, Mass., is being awarded a sole-source letter contract, with a not-to-exceed value of $363,900,000, as an undefinitized contract action to provide two AN/TPY-2 radars.  Work will be performed in Woburn, Mass.  The period of performance is Dec. 30, 2011 through March 30, 2015.  Procurement funds in the amount of $363,900,000 will be used to fund this effort.  The Missile Defense Agency, Huntsville, Ala., is the contracting activity (HQ0147-12-C-0006).
ARMY
            Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $605,998,104 firm-fixed-price and cost-plus-fixed-fee contract.  The award will provide for the 2012 Patriot advanced capability production requirement, which includes missiles, launchers, and ground support, for Taiwan. Work will be performed in Grand Prairie, Texas;  Camden, Ark.;  Lufkin, Texas; Chelmsford, Mass. and Ocala, Fla., with an estimated completion date of July 30, 2015.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W31P4Q-12-C-0002).
            Avon Protection Systems, Inc., Cadillac, Mich., was awarded a $176,364,534 firm-fixed-price contract.  The award will provide for the production of M61 filter canisters for Joint Service general purpose mask.  Work will be performed in Cadillac, Mich., with an estimated completion date of Dec. 22, 2016.  The bid was solicited through the Internet, with six bids received.  The U.S. Army Contracting Command, Aberdeen Proving Ground, Md., is the contracting activity (W911SR-12-D-0001).
            Sikorsky Aircraft Corp., Stratford, Conn., was awarded an $81,168,138 firm-fixed-price contract.  The award will provide for the modification of an existing contract to convert UH-60M aircraft to the United Arab Emirates Armed Forces unique configuration.  Work will be performed in Stratford, Conn., with an estimated completion date of Dec. 31, 2012.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-08-C-0003).
            Shaw Environmental & Infrastructure, Inc., Monroeville, Pa., was awarded an $80,000,000 firm-fixed-price and cost-reimbursable contract.  The award will provide for the emergency response services for the U.S. Army Corps of Engineers.  Work location will be determined with each task order, with an estimated completion date of Dec. 30, 2016.  The bid was solicited through the Internet, with three bids received.  The U.S. Army Corps of Engineers, Omaha, Neb., is the contracting activity (W9128F-12-D-0003).
            Longbow Limited Liability Corp., Orlando, Fla., was awarded a $64,332,047 firm-fixed-price contract.  The award will provide for the modification of an existing contract to definitize radar electronic unit and unmanned aerial vehicle tactical common data link low rate initial production for Taiwan.  Work will be performed in Orlando, Fla., with an estimated completion date of Sept. 30, 2015.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-10-C-0005).
            AAI Corp., Hunt Valley, Md., was awarded a $54,795,517 firm-fixed-price contract.  The award will provide for the modification of an existing contract to procure laser designator retrofit kits for the Shadow unmanned aircraft system.  Work will be performed in Hunt Valley, Md., with an estimated completion date of March 31, 2014.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-08-C-0023).
            General Dynamics Ordnance and Tactical Systems, St. Petersburg, Fla., was awarded a $43,824,598 firm-fixed-price contract.  The award will provide for the procurement of 120mm insensitive munitions high explosive tracer cartridges to the Arab Republic of Egypt.  Work will be performed in several cities across the United States, as well as Norway and Canada, with an estimated completion date of July 30, 2015.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity (W15QKN-12-C-0002).
            Raytheon Integrated Defense Systems, Andover, Mass., was awarded a $34,285,600 firm-fixed-price contract.  The award will provide for the procurement of three Patriot fire units and training equipment for Taiwan.  Work will be performed in several locations within Alabama, Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, Utah, Washington, Italy, Greece, and Canada, with an estimated completion date of Dec. 31, 2016.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W31P4Q-12-C-0069).
            Technologists, Inc., Arlington, Va., was awarded a $30,633,335 firm-fixed-price contract.  The award will provide for the construction services for projects in Afghanistan.  Work will be performed in Kabul, Afghanistan, with an estimated completion date of March 27, 2013.  The bid was solicited through the Internet, with six bids received.  The U.S. Army Corps of Engineers, Kansas City, Miss., is the contracting activity (W912DQ-12-C-4000).
            Cox Construction Co., Vista, Calif., was awarded an $18,710,400 firm-fixed-price contract.  The award will provide for the construction services at the Joint Forces Training Base, Los Alamitos, Calif.  Work will be performed in Los Alamitos, Calif., with an estimated completion date of June 30, 2013.  The bid was solicited through the Internet, with 11 bids received.  The National Guard Bureau, San Luis Obispo, Calif., is the contracting activity (W912LA-12-C-0001).
            Rolls-Royce Corp., Indianapolis, Ind., was awarded an $18,185,434 firm-fixed-price contract.  The award will provide for the procurement of an additional six months logistics support.  Work will be performed in Indianapolis, Ind., with an estimated completion date of June 30, 2012.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-06-D-0072).
            Dragados USA, Inc., New York, N.Y., was awarded a $15,284,720 firm-fixed-price contract.  The award will provide for the services in support of the Portugues Dam and Bucana River Project.  Work will be performed in Ponce, Puerto Rico, with an estimated completion date of March 13, 2013.  The bid was solicited through the Internet, with two bids received.  The U.S. Army Corps of Engineers, Jacksonville, Fla., is the contracting activity (W912EP-08-C-0011).
            Raytheon Co., Missile Systems, Tucson, Ariz., was awarded a $13,918,946 firm-fixed-price contract.  The award will provide for the modification of an existing contract to procure 92H Block-1 Stinger missiles and air-to-air launchers for Taiwan.  Work will be performed in Tucson, Ariz., with an estimated completion date of Dec. 31, 2016.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W31P4Q-09-C-0520).
            Scola, McClelland, Iowa, was awarded a $13,335,756 firm-fixed-price contract.  The award will provide for the language broadcast cable service for multiple locations with the Defense Language Institute Foreign Language Center.  Work will be performed in Monterey, Calif., with an estimated completion date of Dec. 25, 2012.  The bid was solicited through the Internet, with two bids received.  The U.S. Army Mission and Installation Contracting Command, Fort Dix, N.J., is the contracting activity (W91LV2-11-C-0009).
            Manson Construction Co., Seattle, Wash., was awarded a $12,608,500 firm-fixed-price contract.  The award will provide for the maintenance dredging services for areas located in Savannah, Ga.  Work will be performed in Savannah and Brunswick, Ga., with an estimated completion date of March 31, 2012.  The bid was solicited through the Internet, with two bids received.  The U.S. Army Corps of Engineers, Savannah, Ga., is the contracting activity (W912HN-12-C-0001).
            General Atomics Aeronautical Systems, Inc., Poway, Calif., was awarded a $12,000,000 cost-plus-fixed-fee contract.  The award will provide for the support services for Warrior A/Block 0 unmanned aircraft systems.  Work will be performed in Poway, Calif., with an estimated completion date of Dec. 17, 2013.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-12-C-0001).
            Oshkosh Corp., Oshkosh, Wis., was awarded an $11,685,735 firm-fixed-price contract.  The award will provide for the modification of an existing contract to procure heavy expanded mobility tactical truck light equipment transporter vehicles.  Work will be performed in Oshkosh, Wis., with an estimated completion date of Dec. 31, 2013.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-09-D-0024).
            Seneca Construction, L.L.C./J2 Engineering, J.V., Irving, N.Y., was awarded an $8,000,000 firm-fixed-price contract.  The award will provide for full-range support services to customers of the U.S. Army Corps of Engineers.  Work location will be determined with each task order, with an estimated completion date of Dec. 16, 2016.  One bid was solicited, with one bid received.  The U.S. Army Corps of Engineers, Mobile, Ala., is the contracting activity (W91278-12-D-0008).
            Lockheed Martin Missiles and Fire Control, Orlando, Fla., was awarded a $7,789,759 firm-fixed-price and cost-plus-fixed-fee contract.  The award will provide for the procurement of Modernized Laser Range Finder Designator Lot 1 kits and associated spares.  Work will be performed in Orlando, Fla., with an estimated completion date of April 30, 2014.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-11-C-0120).
            Strategic Resources, Inc., McLean, Va., was awarded a $7,724,490 firm-fixed-price, labor-hour contract.  The award will provide for the services necessary to support Joint Base Lewis-McChord’s mobilization mission.  Work will be performed in Joint Base Lewis-McChord, Wash., with an estimated completion date of June 27, 2012.  Six bids were solicited, with six bids received.  The Mission Contracting Office, Joint Base Lewis-McChord, Wash., is the contracting activity (W9124D-11-C-9000).
            Certified Slings, Inc., Casselberry, Fla., was awarded a $7,643,262 firm-fixed-price contract.  The award will provide for the 5,000 aerial delivery cargo slings.  Work will be performed in Casselberry, Fla., with an estimated completion date of June 1, 2014.  One bid was solicited, with one bid received.  The U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-12-C-0070).
AIR FORCE
            Sierra Nevada Corp., Sparks, Nev., is being awarded a firm-fixed price delivery order 0001 contract in the amount of $355,126,541 for the Light Air Support (LAS) aircraft and associated support.  The delivery order is being issued under the simultaneously awarded basic contract FA8637-12-D-6001, an indefinite-delivery/indefinite-quantity contract.  This is a non-developmental aircraft procured for conducting advanced flight training, surveillance, air interdiction, and close air support.  The LAS aircraft is a single-engine turboprop fixed-wing aircraft with tricycle, retractable landing gear, and tandem two-place pressurized cockpit with ejection seats, capable of operating from semi-prepared air fields.  Ground training devices support pilot training.  Interim contractor support is required for all maintenance and supply requirements for the aircraft and associated support equipment, consisting of the following:  20 LAS aircraft; one lot interim contractor support long lead in the continental United States; one lot interim contractor support base activation outside the continental United States; six mission planning  stations; six mission debrief systems; one computer based trainer ground training device; one flight training device ground training device; one lot LAS flight certification to United States Air Force Military Training Center standards.  Locations of performance are Sparks, Nev. (55 percent), and Jacksonville, Fla. (45 percent).  Delivery order 0001 is expected to be completed Apr. 30, 2014.  The basic contract has an ordering period of 60 months.  ASC/WWYAC, Wright-Patterson, Ohio, is the contracting activity.
            Raytheon Co., Waltham, Mass., is being awarded a $38,472,002 cost-plus-award-fee and cost-plus-fixed-fee contract.  This contract modification is for the modernized user equipment completion effort.  This effort corrects modernized user equipment receiver card deficiencies that were identified during functional qualification testing, in order for the receiver cards to comply with contract requirements.  The location of performance is El Segundo, Calif.  Work is expected to be completed November 2012.  SMC/GPK, El Segundo, Calif., is the contracting activity (FA8807-06-C-0004, P00073).
            Integral Systems, Inc., Columbia, Md., is being awarded a $15,698,435 cost-plus-award-fee contract for modification exercises option contract line item number 1006-calendar year 2012 sustainment in support of the Command and Control System Consolidated program.  The support includes program management, hardware and software maintenance, core and satellite vehicle-specific software maintenance, database maintenance, and operations support for Satellite Operations Center Block at Schriever Air Force Base, Colo.  The two locations for the performance are Colorado Springs. Colo. (50 percent), and Schriever Air Force Base, Colo. (35 percent).  Work is to be completed by Dec. 31, 2012.  SMC/MSCSD, El Segundo, Calif., is the contracting activity (FA4701-01-C-0012, P00199).
            Boeing Satellite Systems, Inc., El Segundo, Calif., is being awarded a $9,497,495 cost-plus-fixed-fee contract.  This contract modification of the Wideband Global SATCOM Block II follow-on contract is for spacecraft modernization initiative digital channelizer upgrade study.  The location of performance is El Segundo, Calif.  Work is expected to be completed Jan. 1, 2012.  SMC/PKJW, El Segundo, Calif., is the contracting activity (FA8808-10-C-0001, P00021).
            Raytheon Co., Network Centric Systems, Marlborough, Mass., is being awarded a $9,443,490 cost-plus-award-fee, firm-fixed-price, time-and-materials and cost reimbursement contract.  This action will continue to provide survivable communications for United States strategic nuclear forces; the Minuteman Minimum Essential Emergency Communications Network Program must be upgraded to support communications via the Advanced Extremely High Frequency satellite constellations.  The location of performance is Marlborough, Mass.  Work is expected to be completed 12 months after receipt of order. ESC/HNSK, Hanscom Air Force Base, Mass., is the contracting activity (FA8726-08-C-004, P00080).
DEFENSE LOGISTICS AGENCY
            CSD, Inc.*, New Conroe, Texas, was awarded a fixed-price with economic price adjustment contract with a maximum $11,832,260 for fuel system icing inhibitor.  No other location of performance.  Using service is Defense Logistics Agency Energy.  There were three responses to the solicitation.  Type of appropriation is fiscal 2012 Defense Capital Working Funds.  The date of performance completion is Jan. 30, 2013.  The Defense Logistics Agency Energy, Fort Belvoir, Va., is the contracting activity (SP0600-12-D-0760).
            Grimes Aerospace Co., Urbana, Ohio, was awarded a firm-fixed-price contract with a maximum $9,570,000 for searchlights.  No other location of performance.  Using service is Army.  There was one response to the solicitation. Type of appropriation is fiscal 2012 capital working funds.  The date of performance completion is December 2014.  The Defense Logistics Agency Aviation, Redstone Arsenal, Ala., is the contracting activity (SPRRA1-12-D-0049).
*Small business

Weather This week


Tuesday, 3
13 | 11 °F
Chance of Snow
Chance of
Precipitation
40%

Wednesday, 4
29 | 25 °F
Chance of Snow
Chance of
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50%

Thursday, 5
31 | 25 °F
Chance of Snow
Chance of
Precipitation
30%

Friday, 6
40 | 34 °F
Mostly Cloudy
Chance of
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10%


Saturday, 7
43 | 27 °F
Chance of Rain
Chance of
Precipitation
30%

Forecast: Northern Erie County: WeatherUnderground


Overnight
nt_chancesnowLake effect snow showers and blowing snow. Snow may be heavy at times. Additional accumulation 1 to 3 inches in the most persistent snows northeast of Buffalo...with localized amounts of up to 4 inches possible near Clarence and Akron. Lows around 10 above. Northwest winds 10 to 15 mph. Chance of snow 90 percent.
Tuesday
chancesnowLake effect snow showers likely in the morning...then a chance of snow showers in the afternoon. Additional accumulation 1 to 2 inches. Cold with highs 10 to 15. North winds 10 to 15 mph...becoming northwest. Chance of snow 60 percent.
Tuesday Night
nt_chancesnowMostly cloudy. A chance of snow showers in the evening. Near steady temperatures around 10 above. Northwest winds 10 to 15 mph...becoming south 10 mph or less. Chance of snow 30 percent.

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Monday, January 2, 2012

Former Chief Executive Officer of Construction Supply Company Convicted in Bank Fraud Scheme



U.S. Attorney’s OfficeDecember 30, 2011
  • Eastern District of New York
BROOKLYN, NY—Following three weeks of trial, a federal jury in Brooklyn today returned guilty verdicts against Courtney Dupree, the former chief executive officer at GDC Acquisitions, on charges of bank fraud, false statements, and conspiracy to commit bank fraud. These charges arose out of the defendant’s scheme to defraud Amalgamated Bank, GDC’s asset-based lender, of $21 million in fraudulent loans. When sentenced by U.S. District Judge Kiyo Matsumoto, the defendant faces a maximum sentence of 30 years in prison on the most serious charge. The jury also acquitted Thomas Foley, GDC’s former chief operating officer.
The verdicts were announced by Loretta E. Lynch, U.S. Attorney for the Eastern District of New York.
GDC, based in Long Island City, Queens, is a holding company that owns various subsidiaries, including JDC Lighting, a lighting distributor; Unalite Electric and Lighting, a lighting maintenance company; and Hudson Bay Environments Group, a furniture distributor. The evidence included the testimony of GDC’s former chief financial officer and two GDC accountants, all three of whom had previously pleaded guilty to fraud charges arising from the scheme. At trial, the government proved Dupree and others gave Amalgamated Bank false financial information for GDC in which they had fraudulently inflated the company’s accounts receivables in order to obtain initially, and then maintain, credit lines totaling approximately $21 million. For example, the defendant represented to Amalgamated Bank in writing in November 2009 that GDC had $25.2 million in accounts receivables when, in fact, it had only $9 million. The evidence proved that the conspirators inflated the accounts receivables by a variety of means, including by recording fake sales that had never taken place in the corporate books. According to the trial testimony, the scheme unraveled when one of the accountants turned himself into the FBI and cooperated in the government’s investigation in an undercover capacity for approximately two months.
“The defendant Courtney Dupree defrauded an FDIC insured bank out of millions of dollars by lying about his company’s financial condition,” stated U.S. Attorney Lynch. “Executives who abuse positions of influence and trust should expect to be investigated and prosecuted to the full extent of the law.”
U.S. Attorney Lynch extended her grateful appreciation to the FBI and the U.S. Postal Inspection Service, the agencies responsible for leading the government’s criminal investigation.
The government’s case is being prosecuted by Assistant U.S. Attorneys David C. Woll and Michael L. Yaeger, and Special Assistant U.S. Attorney Brian Morris.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force, visit www.stopfraud.gov.

CDR Financial Products and Its Owner Plead Guilty to Bid-Rigging and Fraud Conspiracies Related to Municipal Bond Investments




U.S. Department of JusticeDecember 30, 2011
  • Office of Public Affairs
WASHINGTON—A Beverly Hills, Calif.,-based financial products and services firm, and its founder and owner pleaded guilty today in the Southern District of New York for their participation in bid-rigging and fraud conspiracies related to contracts for the investment of municipal bond proceeds and other related municipal finance contracts, the Department of Justice announced.
Rubin/Chambers, Dunhill Insurance Services, also known as CDR Financial Products, and David Rubin, CDR founder and owner, pleaded guilty before U.S. District Judge Victor Marrero in the Southern District of New York. Rubin and CDR, along with Zevi Wolmark, also known as Stewart Wolmark, the former chief financial officer and managing director of CDR, and Evan Andrew Zarefsky, a vice president of CDR, were indicted on Oct. 29, 2009. The trial for Wolmark and Zarefsky is scheduled to begin on Jan. 3, 2012, in the Southern District of New York.
Rubin and CDR each pleaded guilty to participating in separate bid-rigging and fraud conspiracies with various financial institutions and insurance companies and their representatives. These institutions and companies, or “providers,” offered a type of contract, known as an investment agreement, to state, county and local governments and agencies throughout the United States. The public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they had issued to raise money for, among other things, public projects. Rubin and CDR also pleaded guilty to one count of wire fraud in connection with those schemes.
“Mr. Rubin and his company engaged in fraudulent and anticompetitive conduct that harmed municipalities and other public entities,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Justice Department’s Antitrust Division. “Today’s guilty pleas are an important development in our continued efforts to hold accountable those who violate the antitrust laws and subvert the competitive process in our financial markets.”
According to court documents, CDR was hired by public entities that issue municipal bonds to act as their broker and conduct what was supposed to be a competitive bidding process for contracts for the investment of municipal bond proceeds. Competitive bidding for those contracts is the subject of regulations issued by the U.S. Department of the Treasury and is related to the tax-exempt status of the bonds.
During his plea hearing, Rubin admitted that, from 1998 until 2006, he and other co-conspirators supplied information to providers to help them win bids, solicited intentionally losing bids, and signed certifications that contained false statements regarding whether the bidding process for certain investment agreements complied with relevant Treasury Regulations. Additionally, Rubin admitted that he and other co-conspirators solicited fees from providers, which were in fact payments to CDR for rigging or manipulating bids for certain investment agreements so that a particular provider would win that agreement at an artificially determined price.
“Mr. Rubin and his firm were trusted with public money and confidence to assist municipalities with issuing bonds,” said FBI Assistant Director in Charge Janice K. Fedarcyk. “Contrary to his agreement and the law, Mr. Rubin shirked his responsibilities while defrauding taxpayers. Thankfully, this bid-rigging scheme, where Mr. Rubin decided the winners and losers, is over.”
“IRS is the federal agency responsible for compliance with tax laws applicable to the issuance of tax-exempt municipal bonds,” said Special Agent in Charge Charles R. Pine of the Internal Revenue Service-Criminal Investigation (IRS-CI) New York Field Office. “Today’s guilty pleas by David Rubin and CDR are the result of a coordinated effort by the Department of Justice and IRS-Criminal Investigation. Depriving municipalities of investment earnings and diverting arbitrage via illegal agreements and kickbacks will not be tolerated. IRS-Criminal Investigation agents will continue to investigate fraud in the municipal bond market and recommend prosecution against those who have participated in the fraudulent scheme.”
The bid–rigging conspiracy with which Rubin is charged carries a maximum penalty of 10 years in prison and a $1 million criminal fine. The fraud conspiracy with which Rubin is charged carries a maximum penalty of five years in prison and a $250,000 criminal fine. The wire fraud charge with which Rubin is charged carries a maximum penalty of 20 years in prison and a $250,000 criminal fine. The maximum fines for each of these offenses may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
CDR faces a maximum criminal fine on the bid-rigging charge of $100 million. The fraud conspiracy and wire fraud offenses with which CDR is charged each carry a maximum criminal fine of $500,000. The maximum fines for each of these offenses may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Rubin is the tenth individual to plead guilty in an ongoing federal investigation into the municipal bonds industry, which is being conducted by the Antitrust Division’s New York Field Office, the FBI and IRS-CI.
In addition, Dominick Carollo and Peter S. Grimm, formerly of GE Funding Capital Market Services, and Steven E. Goldberg, formerly of GE Funding Capital Market Services and FSA, were indicted on July 27, 2010, and are scheduled to begin trial in April 2012. Three former UBS employees, Peter Ghavami, Gary Heinz and Michael Welty, were indicted on Dec. 9, 2010.
Today’s guilty pleas are part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force, visit www.stopfraud.gov.
Anyone with information concerning bid rigging and related offenses in any financial markets should contact the Antitrust Division’s New York Field Office at 212-335-8000, the FBI at 212-384-5000, or IRS-CI at 212-436-1761, or visit www.justice.gov/atr/contact/newcase.htm.

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Drowning of FBI Special Agent Daniel Knapp



FBI San Juan


SAN JUAN, PR—FBI Special Agent Daniel Knapp, assigned to the San Juan Field Office, accidentally drowned on December 29, 2011, at Playa Escondida (Hidden Beach) in Fajardo, Puerto Rico, while rescuing a young adult swimmer.
Special Agent Knapp was approached for assistance by friends of the struggling swimmer and without hesitation swam out to assist. Special Agent Knapp reached the struggling swimmer and was able to provide assistance. The swimmer was rescued by the Police of Puerto Rico-Maritime Unit; however, it appears Special Agent Knapp was overcome by the severe nautical weather conditions.
“Special Agent Knapp exemplified each of the ideals of the FBI, as well as possessing those traits which define a genuine wonderful person. He died a hero, saving another life. We will miss him greatly,” said Joseph S. Campbell, Special Agent in Charge of the FBI San Juan Field Office. “The FBI family mourns alongside Agent Knapp’s family. We ask the media and the public to respect the family’s privacy during this very difficult time.”
Special Agent Knapp was 43 years old and served the FBI for six years. He entered on duty with the FBI in April 2005 and, upon completing new agent training, was assigned to the FBI San Juan Field Office. Special Agent Knapp was a recipient of the 2011 FBI Director’s Award for Outstanding Criminal Investigation and the 2011 Attorney General’s Award for Excellence in Law Enforcement. He is survived by his parents and four brothers.