Former Army Official Pleads Guilty to Conspiracy, Bribery, and Major Fraud Related to Hawaii Defense Contracts

A former civilian U.S. Army official pleaded guilty today to participating in a bribery and major fraud scheme that corrupted the competitive process for a U.S. Army technology innovation lab in the Pacific.  

According to a plea agreement and information filed in the U.S. District Court in Honolulu, Hawaii, from January 2021 to October 2022, Carlos Duque conspired with two defense contractors — Brian Kent and Leonard Pick — to accept a bribe of approximately $1.25 million over five years. In return, Duque told prime contractors to award subcontracts to Kent and Pick’s company and facilitated their fraudulent inflation of government contracting costs to include Duque’s bribe payments. Duque ultimately received approximately $55,000 in bribes from his coconspirators and the United States Army paid over $3 million to Kent and Pick’s company.

“Fraud that deprives the U.S. military of free and fair competition for government contracts harms us all,” said Associate Attorney General Stanley E. Woodward, Jr. “Because of prosecutions like this, Americans can trust that the Department of War and its warfighters maintain the highest standards of integrity.  We expect their contractors to do the same.”

“Those who commit fraud on defense contracts don’t just steal from the military or taxpayers; they threaten the public’s confidence in government institutions and hurt our military readiness,” said Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department’s Antitrust Division. “The Justice Department’s Procurement Collusion Strike Force will detect and prosecute those who, like the defendant, attempt to illegally take advantage of government programs.”

“Americans work hard for their money and have every right to expect that their tax dollars will not be diverted through fraudulent schemes,” said U.S. Attorney Ken Sorenson for the District of Hawaii. “Those who obtain military contracts through fraud undermine both the public trust and the mission of our armed forces, and they will be held accountable.”

“Public corruption — especially when it compromises our nation’s military readiness — undermines trust in the institutions built to protect our country,” said Acting Special Agent in Charge Ryan C. Noonan of the FBI Honolulu Field Office. “This guilty plea reflects the strength of our partnerships in safeguarding government resources and ensuring integrity in the procurement process. Together with our federal law enforcement and military investigative partners, the FBI remains committed to identifying and stopping schemes that undermine fair competition and betray the public’s trust.”

“Public officials are entrusted with a duty to the American people and government service is not an opportunity for personal enrichment at taxpayer expense,” said Director James R. Ives of the Defense Criminal Investigative Service (DCIS), the criminal investigative arm of the Department of Defense Office of Inspector General. “DCIS and our partners remain steadfast in aggressively investigating those who undermine fair and open competition in government contracting.”

“Bribery corrupts the federal contracting process that supports the critical missions of our military and civilian agencies,” said Acting Special Agent in Charge Ryan Gregg of U.S. General Services Administration (GSA) Office of Inspector General (OIG) Western Investigations Division. “GSA OIG special agents will continue to aggressively pursue fraud alongside our law enforcement partners and the Department of Justice.”

Duque pleaded guilty to conspiracy, bribery, and major fraud. Under the conspiracy charge, he faces a maximum penalty of five years in prison and a fine of up to $250,000. Under the bribery charge, Duque faces a maximum penalty of 15 years in prison, a fine of up to $250,000 or not more than three times the monetary equivalent of the bribe, whichever is greater, and disqualification from holding any office of honor, trust, or profit under the United States. Under the major fraud charge, Duque faces a maximum penalty of 10 years’ imprisonment and a fine of up to $5,000,000. In addition, Duque agreed to forfeit $55,166.70 as part of the plea agreement. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors, as well as any restitution to be paid to the Department of War.

A federal grand jury returned an indictment against Kent and Pick in May 2026. The case, United States v. Brian Kent, et al., No. 26-CR-00047-DKW (D. Haw.), is scheduled for trial before the Honorable Derrick K. Watson, Chief United States District Judge of the District of Hawaii, on May 17, 2027. Indictments are only allegations, and all persons charged are presumed to be innocent unless and until found guilty in court.

The Antitrust Division’s San Francisco Office and the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case, which was investigated with the assistance of the Department of War Office of Inspector General’s Defense Criminal Investigative Service, Department of the Army Criminal Investigation Division, and General Services Administration Office of Inspector General.

The Justice Department’s Procurement Collusion Strike Force (PCSF) is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.

Anyone with information in connection with this investigation can contact the PCSF at the link listed above. Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected. For more information on the Antitrust Whistleblower Rewards Program, including a link to submit reports, visit www.justice.gov/atr/whistleblower-rewards