James Edward Miller, 64, the owner of a Virginia-based construction management company, pled guilty today to a federal charge of conspiracy to commit money laundering in connection with an ongoing investigation into the awarding of millions of dollars of contracts by the U.S. Army Corps of Engineers.
…In 2008, Babb proposed that Miller use Big Surf to obtain government contracts awarded by the U.S. Army Corps of Engineers. Under the plan, Big Surf would be hired by EyakTek as a subcontractor. Initially unbeknownst to Miller, Babb was already involved in a conspiracy with, among others, Kerry F. Khan, then a program manager for the U.S. Army Corps of Engineers, and Ananke LLC, a company that was controlled by Khan.
The statement of offense identifies three subcontracts awarded and paid by EyakTek to Big Surf in 2008 and 2009, totaling more than $8 million. Of this money, Big Surf channeled more than $3.6 million from the first two subcontracts to Ananke. According to the statement of offense, Babb directed Miller to pay another $2.9 million, from the third subcontract, to Ananke. However, Miller allegedly reneged on the plan and Big Surf kept the money. As a result, a fourth intended subcontract, worth about $1.9 million, was cancelled.
Justice.gov press release link: here