US Department of Justice Antitrust Case Brief - 02192-225441

8/14/2019 US Department of Justice Antitrust Case Brief - 02192-225441

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INTHEUNITED STATESDISTRICT COURTFORTHE WESTERN DISTRIm OF TEXASS A N ANTONIO DIVISIONW E D TATES OF m C A ,

2 ) MELISSA COCKERHAM,3) C A I & O L Y N B W ,A.K.A. CAROLBRGDSHAW,

Defendants.

CriminalNo.1) Count One: 18 U.S.C. 5 371) . (Conspiracy)

CountTwo: 18U.S.C. 5 201(Bribery)CountThree: 18U.S.C. Q 201(Bribery) .Count Four: 18U.S.C. 5 201Pibery)Count Five: 18U.S.. 1956(h)(MoneyLamdexhgConspiracy)fCountSix:18 U.S.C. 371(Conspiracy)CriminalForfeiture18U.S.C. 6 981(a)(l)(C), 98228 U.S.C.g 2461(c)

INDICTMENTTheGrand Jury charges that at all times relevant to the Indictment:

B.ACKGROUMD1. From at least in OX aboutJune 2004 until in our about July 2007, JohnCockerham,

Jr. ("COCI(ERHAh4")was employedbythe Deparbnmt ofDefmse (?DoDY')as aMajor in t h eUnited States Army attached to the h y ontractingActivity,Fort SamHouston ArmyPost inTexas. From on ox about June 30,2004, though lateDecembex2005, COCIU6- was


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deployed to Camp Arifjan,Kuwait, ervingas a ContractingOfficer.As an Army Officerassigned to a cmkactingoffice, COCKBNUMwas responsible for soliciting and reviewingbids for DoD contracts in sqport of Army operationsin the Middle Bast, including OperationIraqi Freedom, and awarding contracts to DoD contr&tors to provide those goods and services.

COCKESGWMworked on contracts andnumerousblanket purchase agreementsC'BPAs"), whicham indefinitedeli&, indefinitequantity contrad vehicles by which DoDa p e s o pay a contractor a specified price for a partictilax good-or ervice, TheBPAWlen allowsthe DoD to order that good'or ervice inwhatever quantity,and the contractor is bound by theprice agreed .uponin the BPA. When requests are made under a BPA, they are refmed to as"calls," DoD usedtheBPAs o purchase, among otherW s , ottledwater ,desW for soldiersserving in Kuwait and Iraq. Under a BPA, the total value of the goodsAnd services that might becalledunder the contractwas usually capped. For bottled water, the monetary cap per contractor

. was $1.0on.Melissa Cockexham ("M.COcIcaFUUM") is aunited Statescitizenmarried to

COCKERHAMwhoresidedat theFort SamHoustonAmryPost. W~ ~ ~ ~ ' C O CK ERHAMasdeployed to Kuwait, M. COCKERHAM visitedher husband on at least two occasions.

CarolynBlake ("73LAKE")is aUnited States citizenwho lived in Sunnyvale,TexasandKuwait City, Kuwait.duringhe relevant time period. BLAKE is COCKERHAM'Ssister.

/Co-conspirator One s apersonal fjriend of COCKERHAM,who lived in San

Antonio, Texas.6 . Co-conspirator ContractorsA, B, ndC providedvarious goodsaxld services to


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DoD, including bottled water, at CampArdjan,Kuwait and elsewhere. The principal of Co-conspirator ContractorB u.tJ.lizedmultiplecompanieswhen seeking contractsfromDoD.

7. ' Wheneverinthis 1Cndictmen.treference s made to any act, deed or -transactionofany corporation, the allegationmeans that the corporation engaged in the act, deed, or transactionby or through its officers, djxwors, agents, employees,or other representativeswhile they wereactively engaged in the manqmeat, direction, control or transaction of itsbusiness or affairs.

COUNTONE18U.S.C. 5 371(Conspiracy)

Paragraphs 1-7 of he Indictment ,are realleged and incorporated by n k a c e asthough M y et forthhqreh.

From in or about2004~13.til.k or about July2007, n the Western Dkhict ofTexas,Kuwait, theUnitedArabEmirates, and elsewhke,'&f~dmts ..

JOHN COCKERHAM,h.,MELISSAcom-CAROLYNBLAKE'

andothers didhowingly and unlawfullycombine, conspire,confederate, and agreewith othershown and unlmown to the grandjury o;

a) . knowingly and willfully defraud the United States by irrrpairhg, impeding,and defeating the lawful functions of the DoD; and

b) commit an offenseagainst the United States, that is, to directlyandindireotly,wmiptly dernand, seek, eceive, accept, and agree to receiveand acceptWgs o fvalue, that is, among other fb ings , cash, in return forbeing influmcedin he performance of official acts, including awarding


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DoD contracts to the Co-conspirator Contractors and'othexsat CampArifjan,Kuwait in violation of 18U.S.C. 8 201@)(2)(A).

, TIEZIE CONSPIRACYAND ITS OBJECTS10. Itwas an object of the conspiracy for COCgERKAM,M.CO-

BLAKE, Co-conspiratorOne and othersto accept bribe paymentsh m overnmentcozltractors,to p r o ~ d ehe payments toM. O C K E W , BLAKE,Co-conspirator One and others and, inre- COCKERHAM awardedDoD contracts andBPAs tothebribe payors.

) l!UNNER ANX,MEANS OF TYKECQNSPIRACYItwas a part of the conspiracy that C O C m m ,M. C O C K ~ ~ ~ U M A ~ ,LAKE.Co-

conspiratorOne and others would, among otherthings, do the following:11. . AwardCo-conspirator ContractorsandothersDoD contracts, includingbottled

waterBPAs, though a xigged Mdding process, bywhich COCRERHAMwould guaranteethat acontractor would receivea contract in return forpayingmoney to COC-.

12. Make calls on 'and modifications tovariousBPA contraotsawarded to the Co-oompira~oruntraotors in order to generate revenuefor the oompanies.

13 . , InvoiceDoD for gobdsprovided ahd services performed 'mderthe contracts.4 , Pay cash bribepayments to COCKERHGM, M,OCKERHAM,BLAKE,Co-

conspiravr One, nd others, calculated as either a flat k e or as a 'kesidual" moun t per unit itemdeliveredto DoD, totall@gapproximately$9.6 flea

15. Dqos it millions of dollars inbribe money into sd e deposit boxes andbankaccountsin.Kuwait mdDubai in thenamesofM. C O C m w LAKE and others for thebenefit of COCKERHAM.


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16. Wire or cause thewire transfer of bribemoney to bank accounts for the benefit of

OVERTACTS1In Eurtherance of the ~onspixacynd in order to accomplish its objects, the following

overt acts, amongothers,were committedby C O C K a m M. COCRERHAM,B U , o-' conspiratorOne,and othm inKuwait, the westernDistrict ofTexas and elsewhere:

En or about August 2004,BLAKE relocated .toKuwait City,Kuwait.18. On or about October 1,2004, OCRaRHAM issued cal lmodification 006201 on

bottledwaterBPA DAl3M06-03-A-0045or Co-conspiratorContraoto~, roviding $536,300 nadditional fundin$,

19 . On or about December 13,2004,COCKERHAMissued call 0069 onbottledwaterBPA DABMOiS-03-A-0045or Co-conspirator.Conbxctor in the amount of$625,000..

20. On or aboutDecember27,2004, OCKBRHAM ssuedmodification0001onbottledwater BPA DABM06-03-A-0045orCo-conspiratorContractorB, ncreasing the dollarlirnit of theBPA from $1,000,000 o $10,000,000.

21. On ox aboutApril 1,2005,COCKERHAM created he ayardforbottled waterBRAW912D1-05-A-0058,hich was awarded o Co-ixmsp-r ContractorCwith a dollarlinzit of$10,000,000.

22. On or aboutMay 17,2005, O c K E m was nvolvedin he award of bottledwaterBPAW912Dl-05-A-0074o Co-conspiratorContra.ctol:A with a dollar limit of

23. ' On or aboutM a y 18,2005, O C K B M created call 0004on bottled water '


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BPA W912D 1-05-A-0058 to CO-consPiratdrContractor C in the amount of $1,841,428.57.On or aboutMay 25,2005, COCKBRHAM created call 0005 on bottled water

BPA W912D1-05-A-0058 to Co-conspirator Contractor C in the amount of $2,762,142.86.25. h r about May 2005, COCKl3RHAM c@ed call 0006 on bottled water BPA

W9 lZD1-05-A-0058 to Co-conspirator ContractorC in the amount of $322,250,00,. .26. Onor about July 14,2005,M. C O C K E m raveled&om he UnitedStates to

Kuwait via Fr- Geqmmy.27. On or about.August11,2005, M. COWRJ3AM raveledh i uwaitto th e

United States via Fraddbrt,Germany.28, On or about sept& 2,2005, M. COCKERWM traveled&mheunited

States to Kuwait via Amsterdam, the Netherlands.\I

29. In or about September2005, M, COCKERHAM traveled fromKuwaittoDubaiwith a representative of Co-conspirator ContractorB o open safe depositboxes.

30. In or about September2005,while inDubai, a representativeof Co-conspiratorContmctor B gave M. COCKERHATx4Emirati dirham and United States currency.

3 . Izlor aboutSeptember 2005,M. COCKFREZAM deposited the moneyprovidedbyCo-conspirator ContractorB nto safe depositboxes inDubai. *

32. OnoraboutSeptember11,2005,M.COCKBRHAM~veledfrom~u~aittotheUnitedStatesvia&sterdam, theN&erlmds.

33. On or about September 15,2005,C O C K E W issued call 0005 onbottledwater BPA W912DI-05A-0071 to CQ-conspiratorContractorB in the amount of $4,603,571.43.

34. O11or about September 15,2005, C O C I C E W issued call 0006 on bottIed


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water BPAW912D1-05A-0071 to Co-conspirator ContractorB n he amount of $4,603,57 1.43.35 . ' On or about October 15,2005,COCWRHAM issued call0004 on.bottledwater

BPAW9 12D1-05-A-0074 to Co-conspirator CbnfxacforA in lfic amount of $1,841,428.57.On or about 0ctobe.r 15,2005, COCKERHAMissued call0008 on bottled water

BPA W912D1-05-A-0084 to Co-conspirator Contractor C in the amount of $4,603,571. ,43.37. . On or about Deceniber 18,2005, C O C K E N ssuedcaJlOO10 on bottled

water BPA W912D1-05-A-0084 for Co-mnspirator ContsactoxC in the ambunt of

On or aboutDecember 20,2005, COCKERHAM issued call 0011'on bottledwater BPA W912D1-05-A-0084 fbrCo-conspirator ContraotorC in themount of $2,580,000.

Inor about 2005, COCKERHAEvIcreateda document de ta ihg the amounts ofmoney he received from each of the Co-cornpirator Contrmtors and identifying the individuals towhom themoney was paid, includingM. COCKERKAM,BLAKE, Co-consphatorOne andothers.

. 40. Ixlor about 2015,BLAKB eceived approximately $300,000&om Co-conspiratorContractorA and approximately$2 million fkom Co-conspiratorContractor C.

41. In or about 2005, M. C received approximately$300,000 from Co-conspiratorContractorA; approximately$1million from Co-conspiratorContractorB; andapproximately$500,000 from Co-copspirato~Contraotor C.

42. In or about 2005, ~&compirator nercocived appxoximateIy $250,000 from Co-conspirator ContractorB and qproximakly $1,250,000from Co-conspirator Contractor C.

43. In a document datedApril 22,2006, BLAKE detailed the amomts of money she,


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received from Co-conspirator ContractorsA and C, among others,usingcodenames to i d m ethe individuals fi-omwhom she received the money.

44, On or about May 11,2005, Coconspirator One sent $509,637.05viawire transferto a title company in SanAntonio, Texas,

On or about May 11,2006, Co-conspiratorOne purchasedreal property in SanAntonio, Texas.

46, On or aboutAugust 17,2006,M, C O ~ ~raveled fiom theUnited StatestoDubai viaAmsterdam,theNetherlimb:

47. On or aboutAugust 23,2006,M. COCKERHAM traveled fiomDubai to theUnited States via Amsterdam, the Netherlands.

On or aboutAugust 23,2006, up011hei arrival in theUnited States, M.COCKBRHAM ompleteda Currency and MonetaryInetrbentReport, declaring that shewascarrying $14,000cash into the United StatesBornDubd.

(All in violation of Title 18, United States Code, Section 371.),COUNTTWO, .18 U.S.C.. 8 201@)(2)(A)and (C)(Bribery)

Paragraphs 1 through48 of this Indictment are incorporatedbyreference as jffuIIy statedher+ and the followingis further alleged:

49. Beginningin or about June 2 0 0 4 ~ ~ o u g hn or aboutDecember 2006, hKuwaitand elsewhere, defendat

JOHN COCKEREAM, r.


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as a public official, directlyand ndirectly did corruptlydemand, seek, receive, accept, and agreeto receive and accept .things of value in return forbeing iduencedh heperformance of officialacts abd forbeing induced to do and omit to do acts in.violation ofa lawfut duty; hat isC O D olicited and agreed to accept, among other things,approximately $900,000from Co-conspiratorCmtraotorA in rehzm, forawardingDoD contracts,modificaticms and callsto .Co-coqirator ContractorA at Camp Arifjan,Kuwait and elsewhere.

(Nn violation of Title 18, United States Code, Section 201@)(2)(A)and C).)COUNTTHREE'. .I8U.S.C. 201(b)(2)(A) md (c)

(Bribery),

Paragraphs 1 hough 48 of this Indictment axe incorporatedbyreferme as if fully stated\berein, md the followingis fuxt.her alleged:

50, Beginaingin or about June2004 hrough in or about Deoember 2006, inKuwaitand ekewhere, defezldkt

JOHN COCKERHAM, r.as apublic official, directly axid indirectlydid corruptlydemand, seek, receive,accept, and agreeto receive and accept things of value in returnforbeing influencedIntheperformance of official

. .acts and forbeinginduced o do and omit to do acts inviolation of a lawfulw,hat isCOCmRHAM solicited and agreed to accept, among otherthings,approximately $1,700,000 ,fkom Co-conspirator ContractorB in refsmfor awardingDoD contracts, modjhcations and callsto Co-conspiiatorr ConbractorB at Camp k l j a n ,Kuwait andelsewhere,

(All in violation of Title 18, United States Code, Section 20l(b)(Z)(A) and(9.)


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,COUNTFOUR1,8U.S.C. 5 205@)(2)(A)and (C)(Bribery)

Paragraphs I through48 of t l u s Indictment are incorporatedbyreference as if fully statedherein, and the following i s fbrtheralleged:

51. Be-g in or about June 2004 though inor aboutDecember2006, in Kuwaitand elsewhere, defendant

JOHN COCKERHAM, Jr.as apublic official,directlyand ndirectlydid corruptly demand, seek, receive, accept, and agreeto receive and accept things of value in return forbeing influenced in the performance of officialz t s nd for being induced to do and omit to do acts inviolation of a lawfuldw , that isCOCRERHAM solicitedand agreed to accept, among other things, appm+mately $3,600,000from Co-conspiratorCoxlbractorC iareturn fix awardingDoD contracb, m o d ~ c a ~ o n snd cdlsto Co-conspixator Contractor C atCamp Arirjan, Kuwait and elsewhere. .

(Allb vviolation of Title 18, UnitedStates Code, 201(b)(2)(A) and (0)cornm18 U.S.C. 5 1956(h)

money Laundering Conspiracy)Paragraphs 1.~ o u ~8 of this Informationare incorporatedbyreference as if fully

statedherein, and fhe following is fuaher alleged:52, From in or about June 2004 and contipuing until at least in. or about July 2007, the

exact datesbeing unknown, inKuwait, the WesternDistrictof Texas and elsewhere,defendantsJOHNcocIE(ERRAM,Jr.,MELISSA C O C r n W

CAROLYNBLAKE


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and others, did knowingly and htmtionallyconspire to conduct financial transactions affectinginterstateand foreign cornmace, to wit: the transfer and delivery ofmi l l ions of dollars in UnitedStates,Uwa t iand Emirati currency,which in fact involved the proceedsof speoiiliedunlawftdactivity, to wit: bribery, Imowhg that the ransactionwas designedinwhole and in.part toconceal and disguisethenature, location, source, ownership and controlof theproceeds of saidspecitiedUnlawfuJ.activityaad rnowiPg that theproperty involved inthe inancial.transactionrepresented the proceeds of some f h funlawful activity,i~iol&on of Title 18,TJnited StatesCode, Section 1956(a)(l)@)(r).

(Allin violation of Title 18,UnitedStates Code,Section 1956(h))CO'UNTSIX .

. I 8U.S.C. t j 371(Conspiracy to ObstructJustice)Paragraphs 1through48 of this Indictmentare incorporatedby referentie as if fully stated

herein, and the following is further alleged:53. Fromin or aboutDecember 2006 until in or about July2007, in the Westem

District ofTexas, Kuwait, the United Arab Emirates, and elsewhwe,defmdaxlts~JOHN COCKJERHAM,Jr.,MELISSA COCKERHAM,

CAROLYNBLAKEand othexs did knowingly andunlawfully oombine, conspire, confederate, and agreewith othersknown and unknown to cornmit offenses against theUnited States, that is, to corruptlyalter,destroy, mutilate, and conceal a m r d , document, or other obj- and &tempt to do so, with theintent to impair the object's integrity and availability fbr useh x1official and


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/othcrwisi obstruct, influence, and impede any officialproceeding, and attemptm do so, all invjolation of Title 18 ,United States Code, Section 1512(c)(l) and (2).

OBJECT OF THE CONSPIRACY54 . It was an object of the conspiracy for COCIKERHAM,M. COCKERHAM,

BLAKE ,mdothers to misrepresent the source of funds, and cxeate ~ ~ u l e n t :oan agreementsand other correspondence in an effort to legitimize the sowce of payments made by Co-conspirator Contra~toxso COCKERHAM and his assignees.

h!WNNER AND MEANS OF THE CONSPIRACYIt was pad of the conspiracy that COC- andothers would, amongother

things, direct CO-conspirators o destroy evidence,make false representations to investigators and' create fiaudu1ent loan documents,

OVERTACTS56 . Inor about January 2007, C O ( X E W nstructed BLAKE, if questioned by

invistigators, to deny =&ing money, o claim the moneywas given as a loan and o saythatthe m&ey represented investmentsfor a start-up company.

57. Inor about January 2007, C O C ~ R H A MnstructedBLAKE to "get rid ofeverything."

58. ' fil or about January 2007, C O C K E W nstructedCo-conspirator Contractorsto deny maldngpayments on C O C K E W S behalfand/or ts ~ I a i mhat the payments wexeloans.


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59 . In or aboutMarch2007, BLAKl3denied receiving the money detailed on theApril 22,2006, document she created and stated that he money roprosented donation5 to an&.istry that sheplanned to establish,

Inor aboutApril2007, M. COCKERHAM created documents indicating hatmonies provided by Co-conspirator ContractorsA and B were lo= payments.

(All in violation ofTitle 18,United States Code, Section.371)Paragraphs 1 hough 48 of t h i s Indictment are incorporatedby reference as if fully stated

herein, and the following is fiwtheralleged:

Pursuant o Title 18,United States Code, Section981(a)(l)(C)' and Title 28,United States Code, Section2461(c), CO- M. CO- andlorBLAKE, onceconvicted of Count ,I shall forf&t to theUnited States he following:

. .a. Any property,real or personal,which constitutesor is derived fiom

proceeds traceable to the conspiracy to violate 18U.S.C. 201, in violation of 18U.S.C. 5 371.b. A sum of money equal o the totalmount of proceeds traceable to the

conspiracy to commit violations of 18U,S.C, 201, inviolation o f 18U,S.C; 9 371, as chargedin Count One, forwZzichthedefendant(s) is/are convicted.

62. Pursuant to Title 18,United States Code, Section98l(a)(ljondTitle 28,United states Code, Section2461(=), COC once convictedof ~ounts'2,3, ndlor 4(bribery (18 U.S.C. 201)) shall forfeit to the United States the followingproperty:

a. AN right, title, and interest in any and all property involved n he violationof Title 'l8,United StatesCode, Sections201, forwhich .thedefmdaat i s convicted, and all


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property traceableto such property, including the following: I) a31money or otherproperty thatwas the subject of e a ~ holation of Section201.;2) all cdss io lzs , fees and otherpropertyconstitutingproceeds obtained as a result of thoseviola.tions; and 3) all property used in anymanner or part to commit or to facilitate the wmmissionof those violations.

A surn of money equal to the otal amount of money involved in eachoffense inviolation of 18U.S,C. 5 201, as charged in Counts 2 through 4, for wbich thedefendant is convicted.

63. Pursuant to Tit le 18 , United StatesCode Section982, CO(X33RHAM,M.COC- ansVorBLAKE, once convicted of Count 5 (money laundmingconspiracy (18U.S.C. 1956m)) hall forfkt to theUnited Statesthe follourriqgproperty:

a. All right, title, andinterestin any and aJ1property involved in the violationof Title 18,United States Code, Section 1956(1i), ix which the defendant(s) is/are convicted, andall propertytraceableto suchproperty, including the foIlowing I) allmoney or other propertythatwas the subjectof eachviolation of Section 1956(h); 2) all commissions, fees andotherpopaty constituting proceeds obtained as a result of those violations; and 3) all propew used inany manner or$art to commit or to facilitate the commission of those violations.

A sum of moneyequal to the total,amount o fmoney involvedin eachoffense inviolation of 18U.S.C. 8 1956@), as charged inCount 5, fawhich he d&endant(s)idare convicted.

64. Thepropertyto be forfeited& connection with the convictions in Counts 1through 5 includes $9,600,000, a portion of whichmay be satisfiedby the forkitwe o f thefollowing assets:


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Real property located at 1802N. Maine Avenue, SanAntonio,Texas, 78212.Real property located at 111East Locust, SanAntonio, Texas,

Real property located at 117East Locust, SanAntonio, Texas,78212

65. Pursuant to Title 21, United States Code,Section 853(p), as incorporatedby Title18, United States Code, Section 982@), the defendants sbaU forkit substituteproperty, up to$9,600,000 if,by any actor omission of the defendants,thepropertydescribed in@e aboveparagraphs, or anyportion thereof, cannotbe located upon the exercise.of due diligence;has been


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trmsferred, soldto or depositedwith a third par& has been placed beyand the jurisdiction of theCourt;has been mbstantiallydiminishedinvalue; orhas been commingledwith other plGpertywhich cannot be dividedwithoutclifEculty.

(CfimhaI Forfeiture, pursuant Title 18, United StatesCodie,Sections98l(a)(l)(C), 982(a) and Title28, United States Code, Section.2461(c).)

A TRUEBILL,

approvedby

J

WILLJAMM.r n L C H I IChieK Public Integrity SectionCriminalDivision .

~ri 'al ttorneysPublic IntegritySection

LISAPHELAN.. Chief, A a t i ~ t ~ ~ o nCriminal Enfmcement Seotion

ark W. PletcherTrialAttorneysAntitrust Division

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US Department of Justice Antitrust Case Brief - 02192-225441

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