by bvernia | September 10th, 2009
Delmar and Barbara Spier, co-owners of Houston, Texas – based United States Protection and Investigations, LLC (USPI), pleaded guilty yesterday to fraud in connection with a cost-reimbursement USAID subcontract.
Delmar Spier pleaded guilty to conspiracy, major fraud and wire fraud; Barbara Spier pleaded guilty to conspiracy. According to the indictment filed last year, the Spiers fabricated documents to substantiate costs for fuel, vehicle rentals, and USPI-hired Afghan soldiers.
Also named in the indictment were former USPI employees William Dupre and Behzad Mehr; Dupre is scheduled to go on trial in December.
Under the plea agreements, the Spiers must forfeit $3 million traceable to the fraudulent scheme.
In April, the Office of Federal Procurement Policy announced that the US had spent $135 billion in 2008 on cost-type contracts, which have long been viewed as placing great risk on contracting agencies. In July, OMB Director Peter Orszag issued a memorandum in response to a March, 2009 Presidential Directive, calling for agencies to review their contracting practices, and describing cost-type contracts as “high-risk.”
DOJ Fraud Section Trial Attorney Jennifer Taylor and AUSA David Gorman are handling the case for the US. Delmar Spier is represented by Eric Dubelier of Reed Smith in DC; Barbara Spier is represented by Lisa Prager and Michelle Shapiro of Wilson Sonsini Goodrich & Rosati in DC.
