LOCAL CONTRACTOR GUILTY OF FRAUD AT ARMY DEPOT

 

(CORPUS CHRISTI, Texas) – Mario Alberto Garcia, 42, has pleaded guilty to two counts of submitting fraudulent bids for the purpose of defrauding the United States, acting United States Attorney Tim Johnson announced today.

At a hearing before United States District Judge Janis Graham Jack, Garcia admitted to undertaking a bid-rigging scheme in an effort to win government contracts at the Corpus Christi Army Depot (CCAD), located on the Corpus Christi Naval Air Station. As part of the scheme, Garcia would submit inflated counterfeit bids which appeared to have been submitted by competing bidders. Garcia pleaded guilty to two specific instances of submitting counterfeit bids related to a contract for the purchase and installation of office furniture at CCAD during July 2007.  During the hearing, the government introduced evidence of counterfeit bids submitted by Garcia related to four other government contracts awarded during 2006 and 2007. The government also presented evidence of Garcia overcharging the government on one contract and substituting an inferior product on another contract. The total value of all the contracts Garcia obtained or attempted to obtain through fraud is in excess of $1 million.      

Garcia faces up to 10 years imprisonment, a fine of up to $250,000 and up to three years of supervised release following completion of the sentence imposed. Garcia will also be required to pay full restitution. Sentencing has been set for March 12, 2009 at 9:30 a.m.

The case was investigated by agents from the U.S. Army Criminal Investigation Command and the FBI and prosecuted by Assistant United States Attorney Robert D. Thorpe Jr.

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