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U.S. v. James M. Rama

 
:
James M. Rama
:
DOJ Criminal
:
June 16, 2015
:
U.S. v. James M. Rama
:
U.S. v. Rama, No. 1:15-CR-143-GBL (E.D. VA. 2015)
:
Aerospace/Defense
:
Kuweit
:
2004; 2005; 2006; 2007; 2008
:
Officials from Kuwaiti Ministry of the Interior
:
IAP Worldwide Services, Inc. is a Delaware corporation headquartered in Cape Canaveral, Florida. IAP provides facilities management, contingency operations, and professional and technical services in contracting capacities to the U.S. military and civilian agencies. IAP operates in multiple foreign countries around the world, including Kuwait.

James M. Rama served Vice President of Special Projects and Programs from 2005-2007 for IAP. After 2007, Rama worked as a consultant to IAP.

According to an agreed upon statement of facts, beginning in 2004 the Kuwaiti Ministry of Interior (MOI) initiated the Kuwaiti Security Program (KSP) to provide nationwide surveillance capabilities for several Kuwaiti government agencies. The KSP would be divided into two phases. Phase I involved a planning stage and Phase II involved the construction stage of the project. It was understood that the revenues generated by Phase II would be greater than those generated by Phase I.

In or about November 2005, IAP and Rama allegedly received non-public indications from the MOI that their bid would be selected for the Phase I contract. Thereafter, the DOJ explained that, at the direction of MOI and an unnamed “Kuwaiti Consultant”, Rama and others established Ramaco as a shell company to bid on the Phase I contract. According to the DOJ, this was done to allow IAP to hide its involvement in Phase I and participate in Phase II without any apparent conflict of interest.

On or about May 2006, Rama signed the KSP Phase I contract between Ramaco and the Government of Kuwait. According to the DOJ, Rama planned to funnel approximately half of the value of the Phase I contract to Kuwaiti government officials through Kuwaiti Consultant. The DOJ asserts that the payments were made to ensure that IAP worked as the consultant as part of the Phase I contract and would secure the Phase II contract later on.

To execute the scheme, the DOJ alleges that IAP and Rama caused an unnamed “Kuwaiti Company” to inflate its invoices to Ramaco. The additional funds are alleged to have been transferred by the Kuwaiti Company to the Kuwaiti Consultant for use as illicit payments to Kuwaiti government officials. In total, from October 2006 to March 2008, the DOJ alleges that Rama, IAP and their co-conspirators paid the Kuwaiti Consultant approximately $1,783, 688 for use as bribes.

On June 16, 2015, the DOJ announced that Rama agreed to plead guilty to one count of conspiracy to violate the FCPA.
:
Conspiracy - Anti-Bribery
:
Plea
:
Not stated.
:
0
:
Domestic Concern
:
Other Senior Officer
:
U.S.
:
United States
:
Contract Procurement/Retention
:
Not stated.
:
Wire/check
:
Sales Agent/Consultant, Shell entity, Subsidiary Company
:
1,738,688
:
Kuweit
:
No
:
No