Distributor Admits Fraud in Military Contracts Case
Distributor Admits Fraud in Military Contracts Case
Jason Sandefur
C&C Fasteners owner Raymond Cox of Dothan, AL, pleaded guilty to federal wire fraud in connection with a scheme to provide kickbacks to a U.S. Army procurement official at Fort Benning in exchange for being awarded federal contracts, the Columbus Ledger-Enquirer reports.
The official, James H. Cullefer, also pleaded guilty to charges of fraud and tax evasion. Cullefer was a supervisor in the Facilities Maintenance Office at Fort Benning outside Columbus, GA, where he had oversight of Army and Air Force Exchange Service projects in the East region totaling more than $8 million between 1999-2001.
According to Cox’s plea agreement, his companies – C&C Fasteners and Cox & Cox Inc. – gave Cullefer more than $78,000 between Jan. 1, 1999, and Dec. 31, 2001, to pay for installation of a swimming pool at Cullefer’s home and for other purposes. Cullefer told friends and co-workers his wife’s parents provided the pool, according to court documents.
Cox entered his plea five days before the case was set for trial. Both men face up to five years in prison, $250,000 in fines and three years of probation. Both men remain free on bond pending sentencing. �2005 FastenerNews.com
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