Two Individuals Convicted on Charges of Conspiracy = and Bribery in Connection with a U.S. Army Corps of Engineers New = Orleans Levee Reconstruction Project

From: Subject: Two Individuals Convicted on Charges of Conspiracy and Bribery in Connection with a U.S. Army Corps of Engineers New Orleans Levee Reconstruction Project Date: Fri, 3 Apr 2009 08:55:08 -0400 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0000_01C9B439.E3A162F0" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5579 This is a multi-part message in MIME format. ------=_NextPart_000_0000_01C9B439.E3A162F0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.usdoj.gov/atr/public/press_releases/2009/244380.htm Two Individuals Convicted on Charges of Conspiracy = and Bribery in Connection with a U.S. Army Corps of Engineers New = Orleans Levee Reconstruction Project

This document = is available=20 in three formats: this web page (for browsing content), <= FONT=20 color=3D#0000ff>PDF (comparable to original document = formatting),=20 and <= FONT=20 color=3D#0000ff>WordPerfect. To view the PDF you will = need=20 Acrobat Reader, which may be downloaded from the Adobe site. For an official = signed copy,=20 please contact the Antitrust=20 Documents Group. =

FOR IMMEDIATE = RELEASE=20
THURSDAY, APRIL 2, 2009
http://www.usdoj.gov/atr

AT
(202) = 514-2007
TDD=20 (202) 514-1888

TWO INDIVIDUALS CONVICTED ON CHARGES = OF=20 CONSPIRACY AND BRIBERY IN CONNECTION WITH A U.S. ARMY CORPS OF = ENGINEERS=20 NEW ORLEANS LEVEE RECONSTRUCTION PROJECT=20

WASHINGTON =97 A former contract employee of the U.S. Army = Corps of=20 Engineers and a dirt, sand and gravel subcontractor were both = convicted on=20 charges of conspiracy and bribery in connection with a $16 million = hurricane protection project for the reconstruction of the Lake=20 Cataouatche Levee, south of New Orleans, the U.S. Department of = Justice=20 announced today. The Lake Cataouatche Levee is an eight mile = section that=20 currently represents the system's lowest and most vulnerable = stretch and=20 protects the citizens of Jefferson and St. Charles Parishes. Late=20 yesterday, a federal jury found Durwanda Elizabeth Morgan Heinrich = and=20 Kern Carver Bernard Wilson each guilty of one count of conspiring = to=20 commit bribery. Additionally, Heinrich was found guilty of two = counts of=20 offering a bribe to a public official, and Wilson was found guilty = of one=20 count of demanding and agreeing to accept a bribe as a public = official.=20

The conduct centered on an attempt by Heinrich, Wilson and Raul = Miranda, a previously charged former contract employee of the U.S. = Army=20 Corps of Engineers, to steer a dirt, sand and gravel subcontract = on the=20 levee project to Heinrich in return for Heinrich using part of the = proceeds from the subcontract to pay bribes to Wilson and Miranda = for=20 their assistance. In August 2007, Miranda, of Houston, pleaded = guilty to=20 agreeing to accept this bribe.=20

"We are pleased that after being presented with the = government's=20 evidence, the jury found these individuals guilty of conspiracy = and=20 bribery," said Scott D. Hammond, Acting Assistant Attorney General = in=20 charge of the Department's Antitrust Division. "Neither the greedy = conduct=20 of corrupt officials, nor the contractors who bribe them, will be = ignored,=20 and this conviction shows that those who engage in illegal conduct = will be=20 held accountable for their actions."=20

The convictions are the result of an ongoing investigation of = fraud in=20 the procurement of levee reconstruction contracts let by the U.S. = Army=20 Corps of Engineers being conducted by the Antitrust Division's = Dallas=20 Field Office, the U.S. Attorneys Office for the Eastern District = of=20 Louisiana, the Vicksburg Fraud Resident Agency of the U.S. Army = Criminal=20 Investigation Command and the Department of Defense's Criminal=20 Investigative Service through the Hurricane Katrina Fraud Task = Force.=20

"These convictions are further compelling evidence of the = absolute=20 commitment of the U.S. Department of Justice and our partners in = federal=20 law enforcement to maintain a zero tolerance for any public = corruption in=20 the Eastern District of Louisiana, which is so critical to our = rebuilding=20 in the wake of the devastation wrought by Hurricane Katrina," said = U.S.=20 Attorney Jim Letten. "This office and our law enforcement partners = will=20 continue to stand guard over this region, its people and our = rebuilding=20 process."=20

Sentencing for Heinrich and Wilson is scheduled for July 8, = 2009,=20 before the Honorable Judge Carl J. Barbier. The conspiracy charge = carries=20 a maximum penalty of five years in prison and a maximum fine of = not more=20 than three times the amount of the bribe. The bribery charges each = carry a=20 maximum penalty of 15 years imprisonment and a maximum fine of not = more=20 than three times the amount of the bribe. Heinrich and Wilson may = also be=20 disqualified from holding any position in the U.S. government.=20

In September 2005, the Hurricane Katrina Fraud Task Force, now = the=20 Disaster Fraud Task Force, was created to deter, investigate and = prosecute=20 disaster-related federal crimes. To date, the Task Force has = charged 1245=20 defendants in 1160 cases. Anyone with information concerning=20 anticompetitive conduct, fraud, or other allegations of illegal = activity=20 is urged to call the Disaster Fraud Hotline at 866-720-5721, the = Antitrust=20 Division's Dallas Field Office at 214-661-8600, or the Atlanta = Field=20 Office at 404-331-7100.=20

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