Man Convicted for Int'l Conspiracy to Sell Defective Parts to DoD, Etc.
On August 26, 2011, the Justice Department announced that Roger Charles Day Jr. was found guilty of leading an international conspiracy to sell more than $4.4 million in nonconforming and defective parts to the Department of Defense (DoD) and of smuggling gold out of the U.S. into Mexico.
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Man Led Conspiracy to Bid & Win Contracts to Provide Parts to U.S. Military
According to the evidence at trial and court documents, over a four-year period Day led a conspiracy to bid on and win contracts to provide parts to the U.S. military. The parts included “critical application items,” which are essential to weapons system performance or operation or to the preservation of life or safety of operation personnel.
Other Conspirators in U.S. Canada, Mexico, Belize Shipped Defective Parts
Day and other conspirators, operating in the U.S., Canada, Mexico and Belize, formed at least 18 separate companies that posed as legitimate contractors and collectively won nearly 1,000 contract awards. Day and his conspirators then shipped defective parts to the DoD on more than 300 of those contracts, receiving more than $4.4 million in payment on parts that Day purchased for less than $200,000. In all known cases, the parts could not be used for their intended purpose.
Submitted Fabricated Documents Falsely Representing Purchase of Correct Parts
Day and his co-conspirators allegedly concealed their identities through the use of multiple nominee companies and by assuming others’ identities to operate the companies. They also submitted fabricated documents that falsely represented that the correct parts had been purchased. When DOD debarred several of the companies from doing further business with the military, Day directed his conspirators to discontinue bidding through those companies and instead formed and used new companies.
Conspiracy Proceeds in Gold Were Smuggled into Mexico Hidden in Cars
To conceal the proceeds of the scheme and to prevent recovery, Day allegedly directed his conspirators to transfer the scheme’s proceeds to offshore bank accounts and ultimately to purchase more than 3,500 ounces (more than $2.2 million) in gold bars and coins. Day further directed his conspirators to bring the gold bars and coins to his residence in Mexico. On two occasions he directed them to hide the gold bars in the modified bumper of a Toyota LandCruiser and rear hatch door panel of an Austrian Pinzgauer military transport vehicle.
Day’s sentencing is scheduled for December 15, 2011.