honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Thursday, March 26, 2009

Former federal workers indicted in bid-rig scheme

By Jim Dooley
Advertiser Staff Writer

Two former federal employees on Kaua'i have been indicted in a bid-rigging scheme that allegedly landed them nearly $50,000 in federal landscaping jobs from 2005 to 2007.

Charged are Kevin Paik, who worked as a heavy-equipment operator for the U.S. Fish and Wildlife Service on Kaua'i when the alleged bid-rigging took place; and James Alan Duarte, a former employee of the same agency, who worked as a self-employed heavy-equipment operator.

In April 2005, Paik and Duarte formed a partnership in which Paik agreed to purchase heavy equipment and Duarte agreed to operate the equipment on contracts the two obtained, according to the indictment.

Duarte then allegedly arranged that a third, unnamed individual would submit a bid for subcontract work on a federal renovation job at the Hanalei National Wildlife Refuge, with the understanding that Paik would supply the equipment and Duarte would perform the work, according to the government.

The bid was priced at $22,000 to keep it under the $25,000 threshold that required formal bidding, and a $3,000 change order was added later, the indictment charged.

A similar scheme involving a different "straw" bidder was used to obtain another $23,500 subcontract, according to the government.

The two middlemen allegedly kept some of the proceeds paid by the government but forwarded some $40,000 to Duarte, the indictment alleged.

Charges in the case include mail and wire fraud. Paik also was charged with two counts of using his official position to further his personal interests.

Reach Jim Dooley at jdooley@honoluluadvertiser.com.