Free Motion to Stay - District Court of Federal Claims - federal

Case 1:07-cv-00082-MBH

Document 12-2

Filed 09/13/2007

Page 1 of 18

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Case 1:07-cv-00082-MBH

Document 12-2

Filed 09/13/2007

Page 2 of 18

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IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRIm OF TEXAS S A N ANTONIO DIVISION

W E D STATES OF m C A ,
Criminal No.

1
) ) .

Count One: 18 U.S.C. 5 371 (Conspiracy)
Count Two: 18 U.S.C. 5 201

(Bribery)
2) MELISSA COCKERHAM,
Count Three: 18 U.S.C. Q 201

(Bribery) .

3) C A I & O L Y N B W , A.K.A. CAROL BRGDSHAW,
Defendants.

Count Four: 18 U.S.C. 5 201
Pibery)

Count Five: 18 U S C.6 1956(h) .. (Money Lamdexhg Conspiracy)
f

Count Six: 18 U.S.C. 371

(Conspiracy)

Criminal Forfeiture 18 U.S.C. 981(a)(l)(C), 982 86
28 U.S.C. g 2461(c)

INDICTMENT

The Grand Jury charges that at all times relevant to the Indictment:

B.ACKGROUMD
1 .

From at least in OX about June 2004 until in our about July 2007, John Cockerham,

Jr. ("COCI(ERHAh4") was employed by the Deparbnmt ofDefmse (?DoDY')as a Major in t h e
United States Army attached to the h
y Contracting Activity, Fort Sam Houston Army Post in

Texas. From on ox about June 30,2004, though late Decembex 2005, COCIU6-

was

3

deployed to Camp Arifjan, K w i , u a t serving as a Contracting O f c r As an Army Officer fie.

assigned to a cmkacting office, COCKBNUM was responsible for soliciting and reviewing
bids for DoD contracts in sqport of Army operations i the Middle Bast, including Operation n

Iraqi Freedom, and awarding contracts to DoD contr&tors to provide those goods and services.
COCKESGWM worked on contracts and numerous blanket purchase agreements

C'BPAs"), which a indefinite deli&, m

indefinite quantity contrad vehicles by which DoD

a p e s to pay a contractor a specified price for a partictilax good-orservice, The BPA Wlen allows

the DoD to order that good'orservice in whatever quantity, and the contractor is bound by the

price agreed .uponin the BPA. When requests are made under a BPA, they are refmed to as "calls," DoD usedthe BPAsto purchase, among other W s , bottled w a t e r , d e s W for soldiers serving in Kuwait and Iraq. Under a BPA, the total value of the goods A d services that might be n called under the contract was usually capped. For bottled water, the monetary cap per contractor
.

was $1.0 &on.

Melissa Cockexham ("M. COcIcaFUUM") is a united States citizenmarried to
COCKERHAM who resided at the Fort Sam Houston Amry Post. W ~ ~ ~ ~ ' C O C K E R H A M was
deployed to Kuwait, M. COCKERHAM visited her husband on at least two occasions. Carolyn Blake ("73LAKE")is a United States citizen who lived in Sunnyvale, Texas and Kuwait City, Kuwait .duringthe relevant time period. BLAKE is COCKERHAM'S
sister.
/

Co-conspirator One is a personal fjriend of COCKERHAM,who lived in San Antonio, Texas.
6.

Co-conspirator Contractors A, B,and C provided various goods axld services to

4

DoD, including bottled water, at Camp Ardjan, Kuwait and elsewhere. The principal of Coconspirator Contractor B u.tJ.lizedmultiple companies when seeking contracts from DoD.

7.

'

Whenever i this 1Cndictmen.treference is made to any act, deed or -transaction of n

any corporation, the allegation means that the corporation engaged in the act, deed, or transaction
by or through its officers, djxwors, agents, employees, or other representatives while they were
actively engaged in the manqmeat, direction, control or transaction of its business or affairs.
COUNT ONE

18 U.S.C. 5 371 (Conspiracy) Paragraphs 1-7 ofthe Indictment ,are realleged and incorporated by n k a c e as
though M y set forth hqreh.

From in or about 2004~13.til. or about July 2007,i the Western Dkhict of k n Texas, Kuwait, the United Arab Emirates, and elsewhke,'&f~dmts
JOHN COCKERHAM, h, . MELISSA comCAROLYN BLAKE'

..

and others did howingly and unlawfully combine, conspire, confederate, and agree with others hown and unlmown to the grand jury to;
a)
. knowingly and willfully defraud the United States by irrrpairhg, impeding,

and defeating the lawful functions of the DoD; and

b)

commit an offense against the United States, that is, to directly and

indireotly, wmiptly dernand, seek, receive, accept, and agree to receive
and accept W s o f value, that is, among other fbings, cash, in return for g

being influmcedin the performance of official 'acts, including awarding

5

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

T Z CONSPIRACY AND ITS OBJECTS I I EE

1. 0

It was an object of the conspiracy for COCgERKAM,M. C O -

BLAKE, Co-conspirator One and others t accept bribe payments h m government cozltractors, o
to p r o ~ d the payments to M.C O C K E W , BLAKE, Co-conspirator One and others and, in e

re-

COCKERHAM awarded DoD contracts and BPAs to the bribe payors.
)

l!UNNER

ANX, MEANS OF TYKE CQNSPIRACY

It was a part of the conspiracy that C O C m m , M. C O C K ~ ~ ~ U BLAKE.CoMA~,

conspirator One and others would, among other things, do the following:
11. .

Award Co-conspirator Contractors and others DoD contracts, including bottled

water BPAs, though a xigged Mdding process, by which COCRERHAM would guarantee that a contractor would receive a contract in return for paying money to COC-.
1. 2

Make calls on 'and modifications to various BPA contraots awarded to the Co-

oompira~or cuntraotors in order to generate revenue for the oompanies.

13.
4 ,

,

Invoice DoD for gobds provided ahd services performed 'mderthe contracts.

Pay cash bribe payments to COCKERHGM,MM, COCKERHAM, BLAKE, Co-

conspiravr One,and others, calculated as either a flat k e or as a 'kesidual" mount per unit item
delivered to DoD, totall@g approximately $9.6 flea 15.

Dqosit millions of dollars in bribe money into sde deposit boxes and bank

accounts in.Kuwait md Dubai i the names of M. C O C m w BLAKE and others for the n

benefit of COCKERHAM.

6

16.

Wire or cause the wire transfer of bribe money t bank accounts for the benefit of o

OVERT ACTS

In Eurtherance of the ~onspixacy in order to accomplish its objects, the following and
overt acts, among others, were committed by C O C K a m M. COCRERHAM,B U , Co'

1

conspirator One, and othm i Kuwait, the western District of Texas and elsewhere: n

En or about August 2004,BLAKE relocated .to Kuwait C t ,Kuwait. iy
18.
On or about October 1,2004,COCRaRHAM issued call modification 006201 on

bottled wtr BPA DAl3M06-03-A-0045 Co-conspiratorContraoto~ providing $536,300 in ae for B,

additional fundin$,

19.

On or about December 13,2004,COCKERHAM issued call 0069 on bottled

water BPA DABMOiS-03-A-0045 Co-conspirator .Conbxctor in the amount of $625,000.. for B
20.

On or about December 27,2004,COCKBRHAM issued modification0001on

bottled water BPA DABM06-03-A-0045 Co-conspirator Contractor B,increasing the dollar for lirnit of the BPA from $1,000,000 io $10,000,000.
21.

On ox about A r l 1,2005,COCKERHAM created the ayard for bottled water pi

BRA W912D1-05-A-0058, i h was awarded to Co-ixmsp-r w c h
linzit of $10,000,000.

Contractor C with a dollar

22.

On or about M a y 17,2005, O c K E m w s involved inthe award of bottled C a

water BPA W912Dl-05-A-0074 Co-conspiratorContra.ctol:A with a dollar limit of to

23.

'

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

7

BPA W912D1-05-A-0058 to CO-consPiratdrContractor C inthe amount of $1,841,428.57.
On or about May 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 or about May 2005, COCKl3RHAM c@ed call 0006 on bottled water BPA

W9 lZD1-05-A-0058 to Co-conspirator Contractor C i the amount of $322,250,00, n

.

.

26.

On or about July 14,2005, M. C O C K E m traveled &om the United States to
Geqmmy. On or about.August11,2005, M. COWRJ3AM traveled h iKuwait t the o

Kuwait via F r 27.

United States via Fraddbrt, Germany.
28,

On or about sept&
\I

2,2005, M. COCKERWM traveled &mh united te

States to Kuwait via Amsterdam, the Netherlands.
29.

In or about September2005, M, COCKERHAM traveled from Kuwait to Dubai

with a representative of Co-conspirator Contractor B to open safe deposit boxes.
30.

In or about September 2005, while inDubai, a representative of Co-conspirator

Contmctor B gave M. COCKERHATx4 Emirati dirham and United States currency.
3 1.

Izl or about September 2005, M. COCKFREZAM deposited the money provided by
*

Co-conspirator Contractor B into safe deposit boxes i Dubai. n 32.

OnoraboutSeptember11,2005,M.COCKBRHAM~veledfrom~u~aittothe

United States via &sterdam, the N&erlmds.
33.

On or about September 15,2005, C O C K E W issued call 0005 on bottled

water BPA W912DI-05A-0071 to CQ-conspiratorContractor B in the amount of $4,603,571.43.
34.

O11 or about September 15,2005, C O C I C E W issued call 0006 on bottIed

8

water BPA W 12D1-05A-0071 to Co-conspirator Contractor B in the amount of $4,603,57 1.43. 9
35.
'

On or about October 15,2005, COCWRHAM issued call 0004 on.bottledwater

BPA W9 12D1-05-A-0074 to Co-conspirator Cbnfxacfor A in lfic amount of $1,841,428.57.
On or about 0ctobe.r 15,2005, COCKERHAM issued call 0008 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 issued caJlOO10 on bottled water BPA W912D1-05-A-0084 for Co-mnspirator Contsactox C in the ambunt of

On or about December 20,2005, COCKERHAM issued call 0011 on bottled '

water BPA W912D1-05-A-0084 fbr Co-conspirator Contraotor C in the mount of $2,580,000.

In or about 2005, COCKERHAEvI created document detaihg the amounts of
money he received from each of the Co-cornpirator Contrmtors and identifying the individuals to
whom the money was paid, including M. COCKERKAM, BLAKE, Co-consphator One and

a

others.
.

40.

Ixl or about 2015, BLAKB received approximately $300,000 &om Co-conspirator

Contractor A and approximately $2 million fkom Co-conspirator Contractor C.
41.

In or about 2005, M. C

received approximately $300,000 from Co-

conspirator Contractor A; approximately $1 million from Co-conspirator Contractor B; and approximately $500,000 from Co-copspirato~ Contraotor C.
42.

In or about 2005, ~&compirator rcocived appxoximateIy $250,000 from CoOne

conspirator Contractor B and qproximakly $1,250,000 f o Co-conspirator Contractor C. rm
43.

In a document dated April 22,2006, BLAKE detailed the amomts of money she
, '

9

received from Co-conspirator Contractors A and C, among others, using code names to i d m e

the individuals fi-omwhom she received the money.
44, On or about May 11,2005, Coconspirator One sent $509,637.05 via wire transfer

to a title company in San Antonio, Texas, On or about May 11,2006, Co-conspirator One purchased real property in San Antonio, Texas.

46,

O n or about August 17,2006, M, C

O traveled fiom the United States ~ ~

to Dubai via Amsterdam, the Netherlimb:
47.

On or about August 23,2006,M. COCKERHAM traveled fiom Dubai to the

United States via Amsterdam, the Netherlands.
On or about August 23,2006, up011 hei arrival i the United States, M. n

COCKBRHAM completed a Currency and Monetary Inetrbent Report, declaring that she was
carrying $14,000 cash into the United States Born Dubd.
(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 through 48 of this Indictment are incorporatedby reference as jffuIIy stated
her+

and the following is further alleged:

49.

Beginning in or about June 2 0 0 4 ~ ~ o u inh about December 2006, hKuwait g or

and elsewhere, defendat
JOHN COCKEREAM,Jr.

10

as a public official, directly and indirectly did corruptly demand, seek, receive, accept, and agree

to receive and accept .things of value in return for being iduenced h the performance of official
acts abd for being induced to do and omit to do acts in.violation ofa lawfut duty;that is

C

O

D solicited and agreed to accept, among o h r things, approximately $900,000 te

from Co-conspiratorCmtraotor A in rehzm, for awarding DoD contracts,modificaticms and calls

to.Co-coqirator Contractor A at Camp Arifjan,Kuwait and elsewhere.
(N violation of Title 18, United States Code, Section 201@)(2)(A)and (C).) in

'.
,

COUNT THREE .I8U S C § 201(b)(2)(A) md ( ) ... c

(Bribery)

Paragraphs 1though 48 of this Indictment axe incorporated by referme as if fully stated
\

berein, m the followingis fuxt.her alleged: d

50,

Beginaing in or about June 2004 through in or about Deoember 2006, i Kuwait n

and ekewhere, defezldkt
JOHN COCKERHAM,Jr.
as a public official,

directly axid indirectly did corruptly demand, seek, 'receive, accept, and agree
..

to receive and accept things of value in return for being influenced I the performance of official n
acts and for being induced to do and omit to do acts in violation of a lawful

w, is that
, '

COCmRHAM solicited and agreed to accept, among other things,approximately$1,700,000
fkom Co-conspirator Contractor B inrefsm for awarding DoD contracts, modjhcations and calls
to Co-conspiiatorr Conbractor B at Camp k l j a n , Kuwait and elsewhere,

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

11

,COUNT FOUR

1,8U.S.C.

5 205@)(2)(A) and (C)
(Bribery)

Paragraphs I through 48 of t l u s Indictment are incorporated by reference as if fully stated

herein, and the following is fbrther alleged:
5 1.

Be-g

in or about June 2004 though inor about December 2006, in Kuwait

and elsewhere, defendant
JOHN COCKERHAM, Jr.
as a public official, directly and indirectly did corruptly demand, seek, receive, accept, and agree

to receive and accept things of value in return for being influenced in the performance of official
z t s ind for being induced to do and omit to do acts inviolation of a lawful d w , that is COCRERHAM solicited and agreed to accept, among other things, appm+mately $3,600,000
from Co-conspirator Coxlbractor C ia return fix awarding DoD contracb, m o d ~ c a ~ o n s cdls and

to Co-conspixator Contractor C at Camp Arirjan, Kuwait and elsewhere.

.

(All b vviolation of Title 18, United States Code, 201(b)(2)(A) and (0)

18 U.S.C. 5 1956(h) money Laundering Conspiracy)

cornm

Paragraphs 1 ~ .

o 48 of this Information are incorporated by reference as if fully u ~

stated herein, and fhe following is fuaher alleged:
52,

From i or about June 2004 and contipuing until at least in. or about July 2007, the n

exact dates being unknown, in Kuwait, the Western District of Texas and elsewhere, defendants

JOHN c cEE R MJr., oI ( R A ,

MELISSA C O C r n W

CAROLYN BLAKE

12

and others, did knowingly and htmtionally conspire to conduct financial transactions affecting
interstate and foreign cornmace, to wit: the transfer and delivery of millions of dollars in United States, U w a t i and Emirati currency, which infact involved the proceeds of speoiilied unlawftd
activity, to wit: bribery, Imowhg that the transaction was designed i whole and in.part to n

conceal and disguise the nature, location, source, ownership and control of the proceeds of said
specitied UnlawfuJ.activity aad lrnowiPg that the property involved i the financial.transaction n

represented the proceeds of some f
Code, Section 1956(a)(l)@)(r).

h of unlawful activity, i~ viol&on of Tte 18, TJnited States il

(All in violation of Title 18, United States Code, Section 1956(h))

CO'UNTSIX
. I 8 U.S.C. tj 371

.

(Conspiracy to Obstruct Justice)

Paragraphs 1through 48 of this Indictment are incorporated by referentie as if fully stated
herein, and the following is further alleged:
53.

From in or about December 2006 until in or about July 2007, i the Westem n

District of Texas, Kuwait, the United Arab Emirates, and elsewhwe, defmdaxlts~
JOHN COCKJERHAM, Jr., MELISSA COCKERHAM, CAROLYN BLAKE

and othexs did knowingly and unlawfully oombine, conspire, confederate, and agree with others
known and unknown to cornmit offenses against the United States, that is, to corruptly alter, destroy, mutilate, and conceal a m r d , document, or other objand &tempt to do so, with the

intent to impair the object's integrity and availability fbr use hax1 official

and

13

othcrwisi obstruct, influence, and impede any official proceeding, and attempt m do so, all in vjolation of Title 18, United States Code, Section 1512(c)(l) and (2).
OBJECT OF THE CONSPIRACY
54.

/

It was an object of the conspiracy for COCIKERHAM, M. COCKERHAM,

BLAKE ,md others to misrepresent the source of funds, and cxeate ~ ~ u l e n t : agreements loan
and other correspondence in an effort to legitimize the sowce of payments made by Coconspirator Contra~toxs COCKERHAM and his assignees. to

h!WNNER AND MEANS OF THE CONSPIRACY
It was pad of the conspiracy that C C Oand others would, among other

things, direct CO-conspirators destroy evidence, make false representations to investigators and to
'

create fiaudu1ent loan documents,
OVERT ACTS
56.

In or about January 2007, C O ( X E W instructed BLAKE, if questioned by
money, to claim the money was given as a loan and to say that

invistigators, to deny =&ing

the m&ey represented investments for a start-up company.

57.
everything."

I or about January 2007, C O C ~ R H A M n instructed BLAKE to "get rid of

58.

'

fil or about January 2007,

C O C K E W instructed Co-conspirator Contractors

to deny maldng payments on

C O C K E W S.behalf and/or ts ~ I a i m the payments wexe that

loans.

14

59.

In or about March 2007, BLAKl3 denied receiving the money detailed on the

April 22,2006, document she created and stated that the money roprosented donation5 to a
n&.istry that she planned to establish,

I or about April 2007, M. COCKERHAM created documents indicatingthat n
monies provided by Co-conspirator Contractors A and B were lo= payments.
(All in violation of Title 18, United States Code, Section. 371)

Paragraphs 1though 48 of this Indictment are incorporated by reference as if fully stated
herein, and the following is fiwther alleged:

Pursuant to Title 18, United States Code, Section 981(a)(l)(C)' and Title 28,
United States Code, Section 2461(c), C O -

M. C O -

andlor BLAKE, once

convicted of Count ,I shall f r & to the United States the following: oft
. .

a .

Any property, real or personal, w i h constitutes or is derived fiom hc

proceeds traceable to the conspiracy to violate 18 U S C 5 201, in violation of 18 U.S.C. ...
b.

5 371.

A sum of money equal to the total mount of proceeds traceable to the

conspiracy to commit violations of 18 U,S.C, 201, in violation of 18 U,S.C; 9 371, as charged 5

in Count One, for wZzich the defendant(s) is/are convicted.
62.

Pursuant to Title 18, United States Code, Section 98l a ( j Title 28, ( ) land o
once convicted of ~ounts'2,3, andlor 4

United states Code, Section 2 6 ( ) C C 4 1 = , O, -

(bribery (18 U.S.C. 201)) shall forfeit to the United States the following property: 5
a.

AN right, title, and interest in any and all property involvedin the violation

of Title 'l8, n t d States Code, Sections 201, for which .the defmdaat i s convicted, and all Uie

15

property traceable to such property, including the following: I) a31 money or other property that

w s the subject of e a ~ iolation of Section 201.; 2) all cdssiolzs, fees and other property a h
constituting proceeds obtained as a result of those viola.tions; and 3) all property used in any

manner or part to commit or to facilitate the wmmission of those violations.

A surn of money equal to the total amount of money involved in each
offense inviolation of 18 U.S,C. 5 201, as charged in Counts 2 through 4, for wbich the defendant is convicted.
63.

Pursuant to Title 18, United S a e Code Section 982, CO(X33RHAM, M. tts

CC O-

ansVor BLAKE, once convicted of Count 5 (money laundming conspiracy (18

U.S.C. 1956m)) shall forfkt to the United States the follourriqg property: 9
a.

All right, title, and interest i any and aJ1 property involved i the violation n n

of Title 18, United States Code, Section 1 5 ( i ,fix which the defendant(s) is/are convicted, and 961)

all property traceable to such property, including the foIlowing I) all money or other property
that was the subject of each violation of Section 1956(h); 2) a l commissions, fees and other l

p o p a t y constituting proceeds obtained as a result of those violations; and 3) all propew used in

any manner or $art to commit or to facilitate the commission of those violations.
A sum of money equal to the total, amount o f money involved i each n
offense in violation of 18 U.S.C. 8 1956@), as charged i n Count 5, f which the d&endant(s) a idare convicted.

64.

The property to be forfeited & connection with the convictions in Counts 1

through 5 includes $9,600,000, a portion of which may be satisfied by the forkitwe of the following assets:

16

Real property located at 1802N. Maine Avenue, San Antonio,
Texas, 78212.

Real property located at 111 East Locust, San Antonio, Texas,

Real property located at 117 East Locust, San Antonio, Texas, 78212
65.

Pursuant to Title 21, United States.Code, Section 853(p), as incorporated by Title

18, United States Code, Section 982@), the defendants sbaU forkit substitute property, up to
$9,600,000

if,by any act or omission of the defendants, te property described in @e above h

paragraphs, or any portion thereof, cannot be located upon the exercise.of due diligence; has been

17

trmsferred, sold to or deposited with a third par& has been placed beyand the jurisdiction of the
Court; has been mbstantiallydiminished in value; or has been commingled with other plGperty

which cannot be divided without clifEculty. (CfimhaI Forfeiture, pursuant Title 18, United States Codie, Sections 98l(a)(l)(C), 982(a) and Title 28, United States Code, Section. 2461(c).)
A TRUE BILL,

approved by
J

WILLJAMM. rnLCHII ChieK Public Integrity Section CriminalDivision .

LISA PHELAN.
.

Chief, A a t i ~ t ~ ~ . o n Criminal Enfmcement Seotion

~ri'al Attorneys Public Integrity Section

ark W. Pletcher Trial A t r e s tony Antitrust Division

18