Fort Belvoir, Va. –
DCAA Operations Investigative Support Division (OIS) auditors supported special agents of the Defense Criminal Investigative Service, Naval Criminal Investigative Service and Small Business Administration Office of the Inspector General in a multi-million-dollar bribery scheme. OIS auditors provided an audit history review of DoD and Health and Human Services (HHS) contract documents. The team also analyzed financial records and created a list of financial records and transactions related to entertainment provided by Flores to Soriano.
Philip Flores, owner, president and chief executive of Intellipeak Solutions Inc. (Intellipeak), pleaded guilty to participating in a $16 million bribery scheme with former Naval Information Warfare Center employee James Soriano. According to his plea agreement, Flores gave Soriano extravagant meals and sporting event tickets and parking passes, totaling over $18,000. In exchange, Soriano used his position as a contracting officer to fraudulently ensure Intellipeak was awarded numerous no-bid government contracts through the Small Business Administration’s 8(a) program.
The plea agreement revealed the government paid Intellipeak more than $16 million to perform work on approximately 26 government contracts and task orders, conservatively making between $550,000 and $1.5 million through task orders. As part of the plea agreement, Flores agreed to pay restitution to three small businesses that were foreseeable victims of the bribery scheme. DCAA’s role in this case helped identify fraud and return millions of American taxpayer dollars that can be used to support the Warfighter and protect the nation.
Read the press release for more information about this case.