A South Korean national working under a contract with the Defense Logistics Agency pleaded guilty to defrauding the Department of Defense, the Justice Department announced Thursday.
Hyun Dong Jo, whose duty as the contract’s designated manager was to oversee hazardous waste removal, testing, disposal, and related services on U.S. military installations in South Korea, defrauded the Defense Department out of more than $280,000 by forging lab reports and invoices seeking payment for testing and analysis work that had not been completed.
Justice Department lawyers said in a federal court filing in January that Jo began the scheme around February 2015 and continued it through at least June 2018. Jo submitted hundreds of fraudulent lab reports during that period.
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“This charge reflects the Antitrust Division’s commitment to protecting taxpayer dollars spent overseas,” acting Assistant Attorney General Richard Powers of the Justice Department’s Antitrust Division said in a press release. “Individuals who cheat the U.S. military in the performance of contracts will be held accountable. We hope this guilty plea will serve as a deterrent for other contractors who contemplate obtaining illicit gains through engaging in fraud while providing services for the U.S. military domestically or abroad.”
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The guilty plea to one count of wire fraud means that Jo faces a maximum sentence of 20 years in prison and a maximum fine of $250,000, though the fine may be increased to twice the gain derived from the crime or twice the loss suffered by the Defense Department.
The U.S. military has some 28,000 troops stationed in South Korea.
