Two former executives of a Gaithersburg military contractor admitted in federal court in Greenbelt yesterday to having conducted illegal job negotiations with an Army colonel who was in charge of contracting for the armed forces in South Korea, according to Maryland U.S. Attorney Rod J. Rosenstein.
Young Y. Lee, 46, of Rockville and Lorn J. MacUmber, 67, of Gypsum, Colo., each pleaded guilty to one count of aiding and abetting a conflict of interest involving former Army colonel Richard J. Moran.
Lee was president and chief executive of Information Systems Support Inc., and MacUmber was a senior vice president at the firm, federal prosecutors said. Each faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release at the Oct. 12 sentencing.
Information Systems Support provided information technology, logistics and communications support services on federal government projects and installations, including U.S. military operations in Korea.
From June 2000 until January 2002, Moran had command of oversight, approval and execution of more than 17,000 contracts worth more than $310 million annually, according to a statement of facts submitted to a federal judge as part Lee's and MacUmber's plea agreements.
In December 2000, Lee met with Moran in Korea, according to the document. About that time, Moran told an Information Systems Support employee that he was considering retiring from the Army and asked for advice on finding private-sector employment.
During the following year, Lee and MacUmber met with Moran several times, often buying him dinner, according to the statement of facts.
On July 27, 2001, Moran rejected a recommendation by a technical evaluation board to award a multimillion-dollar contract for a global command and control system to another firm, according to the statement of facts. Moran did not tell Lee or MacUmber about the board's recommendation, according to the document. The contract was later awarded to Information Systems Support.
In January 2002, Moran accepted an offer to work at the company for an annual salary of $125,000. Before he could take the job, he was arrested by Army investigators probing allegations of bribery in other contracts, and investigators found more than $700,000 in cash in Moran's home, including $400,000 stuffed into his bed, the Associated Press reported. Moran pleaded guilty to federal conspiracy and bribery charges and was sentenced to prison, officials said.