From the U.S. Attorney’s Office in Baltimore:
On November 8, 2017 United States District Judge George L. Russell III sentenced Danielle N. Kays, age 41, of Bel Air, Maryland to 18 months in federal prison for conspiracy to defraud the United States and commit bribery related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland. Judge Russell also ordered Kays pay forfeiture of $250,700. Kays’ husband John Kays, age 42, of Bel Air, Maryland and Matthew Barrow, age 42, of Toledo, Ohio were also charged in the scheme, have pled guilty and are awaiting sentencing.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service – Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
In March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.
According to the court documents, Danielle Kays was a civilian employee who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.
According to the plea agreements, from August 2008 to June 2014, John Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Mrs. Kays has admitted using her official position to benefit Barrow and MJ-6 during the period 2011- 2014. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various Task Orders, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The indictment alleges that the Kays steered subcontracts worth approximately $21 million to MJ-6.
In order to conceal their corrupt relationship Barrow caused the glass company he worked for to enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow withdrew from his personal accounts and from MJ-6 accounts To conceal the scheme, John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow. The Kays used the cash for their personal benefit, including purchasing two new vehicles; a power boat, jewelry, a pool party at their country club, and to pay credit card bills.
Barrow later agreed to pay the Kays their corrupt money from MJ-6 disguised as employment salary.
John Kays also pled guilty and is scheduled to be sentenced December 15, 2017 at 2 p.m. Matthew Barrow is scheduled to be sentenced January 12, 2018.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys? Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning thanked the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Schenning praised Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
The vasy majority of us Government employees won’t even take a cup of coffee from a contractor to avoid any conflict of interest. These 3 shady characters however were too money hungry and now will pay big time for their greed. Their jail time and fines are well deserved, and I only wish their time in prison was longer.
The vast majority of us defense contractors wouldn’t offer a cup of employee to a government employee. the entire thing is disgusting and puts a dark cloud around the industry.
Not often – but in a long career, I have seen contractors attempt to influence, or get info from, Govt. employees. It has happened to me personally. I told the people making the suggestion to get out of my office before I called the MP’s.
Funny, because it is those same GOV employees – when nearing the end of their career with the government, who suddenly get all cozy with us “dirty” contractors in an attempt to gain employment post-retirement…at a whopping pay increase, of course.
Happens all the time.
Having been employed on both sides, just as many Government employees are guilty of the same time of thing. They are admonished / fined / fired…etc….for the very same reasons: attempting to influence contractors. Don’t paint a wide swath of doubt with your comments about coffee –
18 months is hardly retribution for $21m in fraudulent practices.
“Before you called the MPs”? From APG? LOL…they couldn’t catch a cow running down the street, if it had been hit by a car and was hopping on one leg. Too many phone calls to request permission to do something…from the government. LOL
Post about not taking a cup of coffee from a contractor but makes a comment at 1pm Nov 13th.
You off work?
Yup. Lots of use or lose annual leave after a 30+ year career. Life’s good.
” in an attempt to gain employment post-retirement…at a whopping pay increase, of course.”
And there is something illegal about seeking post Government employment with a contractor? A number of my peers retired under the CSRS system after 35 years, and have now been hired back by contractors. Their combined retirement and contractor salary is more than what the SESers are earning. I’ll be doing that soon myself. Already talked to the lawyers about what I can and cannot do and will jump on the gravy train before too long.
Don’t blame you – that’s what I did. The only issue I have seen, from when hiring former Government employees – is if they were in a position to make decisions on contract awards. There is some type of “cooling off” period where they cannot enter into contract employment related to the same contract.
Unless, of course, they are deemed “consultants” and not directly hired by the company.
The whole system is a joke, but we do what we gotta do in order to put the kids through college.
why hasn’t the Patch picked up this news story?
Both are West Point graduates (free education) and on disability from the Army (also interesting if you start looking online for marathon results). Completely contemptible people whose behavior unfairly taints the hard work so many civilians do to support our military.
Agree with Bookem.
I am a proud military spouse of WP grad, have been a government employee and now a supporting contractor. What morals they had went away years ago as they were plotting and spending taxpayer $$$. They obviously put themselves above the law and before anyone else to include their kids. I’m appalled at their arrogance and actions. They’re getting off easy for “disabled veterans.” Their kids are now suffering because of their own greed and lack of any morals.
Funny . . . I just found out that John Kays’ father, James L. Kays, is a retired General. Brigadier General James L. Kays ran the Systems Engineering Department at West Point for many years. General Kays is highly decorated receiving the Army Distinguished Service Medal and the Legion of Merit. Very sad for this idiot to disgrace his father, and West Point.
Who fucking cares? Oh right, you do.