Federal prosecutors say two Florida men paid roughly $1.25 million in secret payments to a U.S. Army employee and inflated contract costs to win work tied to a Hawaii-based Army innovation campus, triggering a wide joint investigation and a multi-count indictment in the District of Hawaii.
Earlier this week the Justice Department announced criminal charges against Leonard Pick, 62, of Palm Beach Shores, Florida, and Brian Kent, 59, of Tampa, Florida, for orchestrating a bribery and major fraud conspiracy that corrupted the competitive procurement process for a Department of War technology innovation lab in the Pacific. Federal authorities say the scheme targeted a procurement for the U.S. Army Pacific Command’s Hawaii-Pacific Innovation Campus. The two men now face criminal counts unsealed after an indictment filed in the District of Hawaii on May 14.
The indictment alleges the scheme ran from January 2021 to October 2022 and involved concealed payments and false billing woven into contract proposals and invoices. Prosecutors say the pair conspired to bribe a U.S. Army employee with approximately $1.25 million over five years and to hide those bribe payments inside inflated government contracting costs. That pattern of billing is central to the fraud counts in the charging document.
These allegations revolve around work meant to be a hub for testing and maturing new technologies for the Department of War, and prosecutors argue the corruption undermined the integrity of a process meant to reward innovation and fair competition. The complaint says construction and operation of the Hawaii-Pacific Innovation Campus were directly affected by the defendants’ actions. Investigators emphasize the national security implications when defense contracts are steered by payoffs instead of merit.
“When defense contractors obtain government-funded work through bribery and fraud, they rob our military and the American people of the benefits of a fair, competitive procurement process,” said Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department’s Antitrust Division. He stressed that the Antitrust Division and partners in the Procurement Collusion Strike Force will pursue those who profit at taxpayers’ expense. That office has prioritized rooting out bid-rigging and similar schemes in defense procurement.
The indictment further alleges that, from approximately September 2020, up to and including October 2022, defendant Kent further defrauded the government by inflating government contract costs to include approximately $680,000 in payments intended for and sent to Kent’s personal consulting business.
“Government contracts must be awarded based on fair competition, not secret bribes hidden in inflated costs,” said Acting Director of Criminal Enforcement Paul V. Courtney of the Justice Department’s Antitrust Division. The Justice Department framed the case as part of a broader effort to protect taxpayers and honest competitors from corrupt practices. Officials say vigorous prosecution is necessary to deter similar schemes.
Defendants Pick and Kent are each charged with one count of conspiracy to commit bribery and major fraud against the United States, one count of bribery, one count of major fraud against the United States, and one count of wire fraud. Kent is also charged with a second count of major fraud against the United States. The indictment lays out alleged false statements, improper routing of payments, and corresponding contract inflation tied to the awards.
“Corruption in our military procurement processes harms honest companies seeking to compete fairly, steals from our taxpayers, and erodes faith in our government institutions,” said U.S. Attorney Ken Sorenson for the District of Hawaii. He said the U.S. Attorney’s Office will pursue accountability in federal court for any defense contractors who try to subvert competition through bribery and corrupt practices. The statement underscores the local prosecutorial role alongside federal antitrust enforcement.
The charging document describes the potential statutory penalties in detail. The maximum penalty for conspiracy to commit bribery and major fraud is five years in prison and a $250,000 fine. The maximum penalty for bribery is 15 years in prison and a fine of either $250,000 or three times the monetary value of the bribe, whichever is greater, while major fraud carries up to 10 years and a $1,000,000 fine, and the maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
Fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount exceeds the statutory maximum fines listed above. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors that apply at sentencing. Those procedural notes are standard but important in understanding potential outcomes.
“The criminal conduct uncovered in this investigation represents a profound betrayal of the public trust,” said Special Agent in Charge David Porter of the FBI Honolulu Field Office. He said the defendants prioritized personal profit over national security by using bribery and fraud to obtain defense contracts. The FBI noted it would continue to pursue those who corrupt procurement processes.
These indictments come from a multi-agency probe into fraud and collusion in the defense contracting industry in Hawaii. The investigation involves the Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the District of Hawaii, the Federal Bureau of Investigation, the Department of the Army Criminal Investigative Division, the U.S. Department of Defense’s Defense Criminal Investigative Service, the U.S. General Services Administration’s Office of Inspector General, and the Naval Criminal Investigative Service. Trial Attorneys Nolan Mayther, Andrew Schupanitz and Kylie McLaughlin, and Senior Litigation Counsel Mikal Condon are prosecuting the case.
“Those who scheme for ill-gotten profits through unscrupulous and shady dealings should take heed of these very serious charges,” said Special Agent in Charge Stanley A. Newell of the Department of War, Office of Inspector General’s Defense Criminal Investigative Service, Transnational Operations Field Office. He reaffirmed DCIS’s commitment to protecting the integrity of military procurement and to holding accountable those who threaten it. Partner agencies will continue coordinated investigations of procurement abuse.
The Justice Department’s Procurement Collusion Strike Force is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government. Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward, which can range from 15 to 30 percent of the money collected. The Antitrust Whistleblower Rewards Program offers a formal channel to submit such information.
“Those who attempt to corrupt government processes for personal gain undermine public trust,” said Special Agent in Charge Christopher Bjornstad of the U.S. General Services Administration Office of Inspector General Western Investigations Division. He noted that GSA OIG agents will keep working with law enforcement partners to investigate abuse of positions of trust. The agencies emphasized a shared mission to protect taxpayer funds and fair competition.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
