A Virginia man who is a former vice president of a Florida-based defense contractor pleaded guilty on Tuesday to bribing Kuwaiti officials to win a government contract, and his former company agreed to pay millions in fines.
The Department of Justice said James Michael Rama of Lynchburg, Va., admitted to helping IAP WorldWide Services establish a shell company so it could bid on a contract to provide Kuwaiti government agencies surveillance capabilities, and then tailor the bid’s next phase to favor IAP.
IAP has agreed to pay the government $7.1 million to end the investigation, Justice said.
Rama and his former employer also used a consultant to dole out $1.8 million in bribes to Kuwaiti officials, according to Justice. Rama will be sentenced on Sept. 11.
IAP’s $7.1 million fine ends the probe and spares it prosecution. Part of the agreement requires the contractor to “conduct a review of its existing internal controls, policies and procedures, and make any necessary modifications to ensure that the company maintains accurate record keeping and a rigorous anti-corruption compliance program,” Justice stated.
