Scheme Resulted in Receipt of More Than $200,000 in Fraudulent Bonuses
WASHINGTON – A former soldier who also served as a contract military
recruiter pleaded guilty today to conspiracy to obtain more than
$200,000 in fraudulent recruiting bonuses from various U.S. military
components and their contractor, announced Assistant Attorney General
Lanny A. Breuer of the Justice Department’s Criminal Division.
Former Staff Sergeant Grant E. Bibb, 40, of Eagle Pass, Texas, was
indicted on Sept. 13, 2011, along with former Specialist Xavier Aves,
40, of San Antonio; former Corporal Christopher Castro, 30, of San
Antonio; Sergeant First Class Jesus Torres-Alvarez, 31, of El Paso,
Texas; Specialist Paul Escobar, 31, of San Antonio; and Specialist
Richard Garcia Jr., 28, of San Antonio.
According to court documents filed in U.S. District Court for the
Western District of Texas, Grant E. Bibb served in the Army National
Guard from approximately January 2003 until July 2007.
Bibb served in the Army Reserves from approximately October 2007 until November 2010.
Bibb also served as a contract military recruiter from December 2007 until April 2009.
According to court documents, between approximately 2005 and 2008, the
U.S. Army, the U.S. Army Reserves and the National Guard Bureau entered
into contracts with Document and Packaging Broker Inc., to administer
recruiting bonus programs designed to offer monetary incentives to U.S.
soldiers who referred others to join the U.S. military. In addition, the
Army managed its own recruiting programs to offer bonuses to soldiers
who referred other individuals to join the Army or the Army Reserves.
Through these recruiting programs, a participating soldier could receive
up to $2,000 in bonus payments for every person he referred to join the
U.S. military. Based on certain milestones achieved by the referred
soldier, a participating soldier would receive payments in the form of
direct deposits and pre-paid debit card payments.
Bibb admitted that, between approximately September 2007 and February
2010, he participated with others in a scheme to obtain fraudulent
recruiting bonuses. Bibb admitted that he paid certain active duty
recruiters and another individual for the names and Social Security
numbers of potential soldiers.
Bibb also admitted that he used this information to claim that
he was responsible for referring certain potential soldiers to join the
military, when in fact he did not refer them to join.
As a result of his fraudulent representations, Bibb personally
received a total of approximately $35,000 in fraudulent recruiting
bonuses. In addition, Bibb admitted that he and certain active duty
recruiters helped U.S. soldiers establish online accounts to enable the
soldiers to participate in the fraudulent bonus scheme.
Bibb admitted that, in total, he and his co-conspirators obtained at
least approximately $205,000 in fraudulent recruiting bonuses.
The charge of conspiracy to commit wire fraud carries a maximum penalty
of five years in prison and a $250,000 fine. Sentencing has been
scheduled for May 25, 2012, before Chief U.S. District Judge Fred Biery
in San Antonio.
The case against Bibb arises from an investigation involving allegations
that former and current military recruiters and U.S. soldiers in the
San Antonio area engaged in a wide-ranging scheme to obtain fraudulent
recruiting bonuses.
To date, the investigation has led to charges against seven individuals, four of whom have pleaded guilty.
On Jan. 28, 2010, Sergeant Ernest Gonzales, 50, of San Antonio, pleaded
guilty before Chief Judge Biery to a one-count criminal information
charging him with conspiracy to commit wire fraud for his role in the
scheme.
Gonzales has not yet been sentenced.
On Nov. 3, 2011, Castro pleaded guilty before Chief Judge Biery to one count of conspiracy to commit wire fraud.
According to court documents, Castro admitted that he
participated with others in the scheme to defraud the Army’s recruiting
bonus programs.
Castro has not yet been sentenced.
On Jan. 26, 2012, Torres-Alvarez pleaded guilty before Chief Judge Biery to one count of conspiracy to commit wire fraud.
According to court documents, Torres-Alvarez, an active duty
recruiter, admitted that he sold the names and Social Security numbers
of potential soldiers to others involved in the scheme.
Torres-Alvarez has not yet been sentenced.
The case against Bibb’s co-defendants – Aves, Escobar and Garcia – is scheduled for trial on April 23, 2012, in San Antonio.
These defendants are presumed innocent until proven guilty in a court of law.
The case is being prosecuted by Trial Attorneys Edward J. Loya Jr. and
Brian A. Lichter of the Criminal Division’s Public Integrity Section.
The case is being investigated by agents from the San Antonio Fraud
Resident Agency of the Major Procurement Fraud Unit, U.S. Army Criminal
Investigation Command.
(No Ratings Yet)
Loading …
Posted in 
Add to Google