Procurement fraud investigation at Florida base expands

A widening fraud investigation at the U.S. Special Operations Command at MacDill Air Force Base in Tampa, Fla., is raising new questions about contractors' role in federal procurement.

William Burke, a private contractor advising on acquisitions, pleaded guilty to bribery-related charges earlier this month. He admitted to favoring certain companies by recommending their products to SOCOM, which leads military operations against terrorist networks, in return for cash and unspecified future compensation.

This week, the fraud investigation expanded to include SOCOM Commander Gen. Bryan Brown, although his potential role in any wrongdoing is unclear.

Burke, 50, of Odessa, Fla., started working for SOCOM in 1999. A spokesman for SOCOM said he was placed there through a Defense Department contract, and remained until June of this year. At the time he started working for the command, he was an employee of Alexandria, Va.-based Sentel Corp., which sells electronic equipment and services to government agencies.

According to Sentel, none of the activities in question involved the company. Burke has not worked for Sentel since June.

"Unbeknownst to Sentel Corp., Mr. Burke was working independently from his house with his own business," said James Garrett, the company's president, in reference to Burke's illegal activities. "Sentel has a long, successful history of working with the federal government, and we do not tolerate unethical or illegal behavior from our employees," Garrett said in an email statement.

At SOCOM, Burke analyzed equipment being considered for purchase and made recommendations on whether officials should buy the items.

While parts of acquisition work are considered inherently governmental functions, agencies, including the military, often hire companies to assist them with acquisition decisions and strategies. In this case, Burke was "instrumental" in determining what equipment SOCOM was likely to purchase, according to the plea agreement.

"There are internal and external checks in the system," said Ken McGraw, a SOCOM spokesman, in an e-mail. "Mr. Burke's job was to research and make recommendations on projects, but he did not have decision-making authority over USSOCOM acquisitions."

McGraw said SOCOM is reviewing the contracts on which Burke worked, as well as some of the command's procedures. After that review is complete, McGraw said, "we will determine what changes need to be implemented." He said SOCOM will wait to decide if additional controls are needed.

Brown initially asked the command's inspector general's office to investigate, after receiving information that alerted him to a potential problem, McGraw said. After beginning its investigation, the IG's office determined that criminal activity might have occurred, causing Brown to turn the case over to the Defense Criminal Investigative Service.

The case was investigated by DCIS, the Defense Department, the FBI and SOCOM's IG. Assistant U.S. Attorney Robert O'Neill is prosecuting the case. According to the plea agreement, Burke favored contractors represented by an unidentified individual, who paid him $9,000. The money came through companies that Burke and the unnamed individual had formed.

"[Burke's] understanding was that, from this agreement, [he] would be compensated and would receive substantial compensation from this other individual 'down the road,' " the plea agreement says.

Phone calls to Burke's attorney, Daniel Hernandez, were not returned.

The St. Petersburg Times reported earlier this month that the investigation is expanding to cover other individuals related to SOCOM, and reported Friday that Brown also is under investigation. The paper reported that it received an anonymous letter in the mail on Tuesday which said Brown showed illegal preference to friends and former colleagues when awarding contracts. SOCOM could not immediately provide more information.

Steve Cole, spokesman for the U.S. Attorney's office for the middle district of Florida, said the investigation is ongoing, "but we can't speculate on future developments or areas."

Burke's plea agreement specified that he must cooperate in any ongoing investigations. That language is standard for plea agreements, Cole said.

Burke faces up to 15 years in prison and a $250,000 fine. He will likely be sentenced within the next 90 days, according to Cole.