<p><a href="https://www.the-chesapeake.com//wp-content/uploads/2014/03/FRAUD.jpg"><img class="alignleft size-medium wp-image-3287" src="https://www.the-chesapeake.com//wp-content/uploads/2014/03/FRAUD-247x300.jpg" alt="FRAUD" width="247" height="300" /></a><a href="https://www.the-chesapeake.com//wp-content/uploads/2014/03/FRAUD.jpg"><br />
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<p>RALEIGH &#8211; <strong>United States Attorney Thomas G. Walker</strong> announces that a federal grand jury in Raleigh, North Carolina returned a 5 count indictment charging <strong>CRAIG KOLHAGEN, DENNIS PENNINGTON, and JAMES BOWLING with conspiracy to commit wire fraud</strong>, wire fraud, major fraud against the government, and procurement fraud.</p>
<p>The Grand Jury charges that, from 2011 until December 2013, KOLHAGEN, PENNINGTON, and BOWLING engaged in a conspiracy to defraud the United States in connection with a bid proposal for a contract to perform maintenance work on helicopters in <a href="http://www.hqmc.marines.mil/hmx-1/UnitHome.aspx" target="_blank">Marine Helicopter Squadron One (HMX-1). </a>The HMX-1 squadron is tasked with providing helicopter transport to the President of the United States, among other duties.</p>
<p>KOLHAGEN, who is a<strong> Chief Warrant Officer in the United States Marine Corps</strong>, had been the Contracting Officer’s Representative for the HMX-1 squadron. BOWLING and PENNINGTON are retired Marine Corps senior non-commissioned officers, who served as helicopter mechanics during their military careers. Currently, PENNINGTON is Chief Executive Officer and BOWLING is President of Valour, LLC, a Louisiana-based defense contractor engaged in the business of helicopter repair for the military.</p>
<p>The Indictment alleges that KOLHAGEN illegally leaked confidential information regarding the cost of a proposed contract for the maintenance of HMX-1 helicopters. In turn, PENNINGTON and BOWLING unlawfully colluded with KOLHAGEN to artificially inflate the cost estimate of the bid proposal, and to draft the proposed contract’s statement of work and technical requirements in a way to favor Valour over other potential bidders, according to the indictment.</p>
<figure id="attachment_6593" aria-describedby="caption-attachment-6593" style="width: 300px" class="wp-caption alignleft"><a href="https://www.the-chesapeake.com//wp-content/uploads/2014/11/Presidential-helicopter-Sikorsky.jpg"><img class="size-medium wp-image-6593" src="https://www.the-chesapeake.com//wp-content/uploads/2014/11/Presidential-helicopter-Sikorsky-300x190.jpg" alt="The next Presidential helicopter. Photo from Sikorsky. " width="300" height="190" /></a><figcaption id="caption-attachment-6593" class="wp-caption-text">The next Presidential helicopter. Photo from Sikorsky.</figcaption></figure>
<p>Mr. Walker remarked, “This investigation highlights the unwavering determination of the Department of Justice to root out corruption in the military contracting process and to safeguard taxpayer dollars.”<br />
&#8220;We are committed to protecting Navy and USMC personnel and materiel assets, extending to ethical and equitable contracting practices&#8221; stated Andrew Traver, Director of the Naval Criminal Investigative Service.</p>
<p>These comments were underscored by <strong>Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service</strong>, who said, “DCIS remains committed to working with its law enforcement partners to investigate individuals who attempt to manipulate the procurement process for their own gain.”</p>
<p>The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law. The case is being investigated by the Naval Criminal Investigative Service (NCIS) and the Defense Criminal Investigative Service (DCIS). <strong>Assistant United States Attorney Evan Rikhye</strong> is prosecuting the case for the government.</p>
<p><a href="http://news.usni.org/2014/05/07/sikorsky-wins-xx-billion-contract-presidential-helo" target="_blank">New fleet of presidential choppers may run $20 billion. </a></p>
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