Federal prosecutors have accused the Maryland IT owner of rigging contracts.
A federal lawsuit in Maryland has brought fresh attention to fraud tied to government contracts after prosecutors announced new charges against the owner of one of the IT companies. Victor Marquez, a Maryland IT executive, is accused of conspiring with others to defraud the federal government out of millions of dollars by fixing bids on case centers and making secret payments. According to court records, a federal grand jury returned a latest indictment in Baltimore that expands on earlier charges and lays out a detailed plan to push cash-for-deal deals.
Prosecutors say Marquez used inside access to sensitive government information to control how certain IT contracts were awarded. These contracts were awarded to major federal agencies, including those involved in national defense. By knowing what the government planned to buy and how much it was willing to pay, Marquez and others were able to decide ahead of time who would win the job. Competing companies were shut down, not because they lacked expertise or value, but because the process had already been set behind closed doors.
The indictment alleges that Marquez worked with sales representatives and executives from other IT firms. In exchange for directing the contracts his way, he received kickbacks that were quietly added to the prices charged to the government. Those involved allegedly used coded language to describe the payments, calling them “taxes” linked to Marquez’s first name. Over time, prosecutors say the scheme caused government procurement prices to increase by more than $3.8 million, money that ultimately came from taxpayers.
Two people linked to the case have already admitted wrongdoing. IT sales representative James Brier pleaded guilty earlier this year to conspiracy to commit illegal payments. IT sales executive Robert Fay also pleaded guilty to paying kickbacks and breaking a federal law meant to protect fair dealing. Both men now face possible prison time, with sentencing dates to be set at a later date. Their guilty pleas helped clear the way for expanded charges against Maryland IT executive Marquez.
Federal officials described the matter as a serious breach of trust. He emphasized that government contracts, especially those related to defense and security, depend on fairness and open competition. When insiders abuse their access, officials say it not only wastes public money but also undermines confidence in how government does business. Investigators from multiple agencies worked together on the case, including the FBI, the investigative arm of the Department of Defense, and the Office of the Inspector General for the National Security Agency.
If convicted, Marquez could face decades in prison. Each wire fraud count carries a possible sentence of up to 20 years, with additional time for conspiracy and grand larceny charges. Any sentence will be decided by a federal judge, who will weigh legal guidelines and other factors before making a final decision.
The case is part of a broader effort by the Department of Justice to crack down on fraud involving public spending. In recent years, federal officials have increased their focus on bid-rigging, price-fixing, and secret deals that increase taxpayer costs. A special task force was formed to bring together prosecutors and investigators from across the country to find and stop these practices.
Officials also encouraged anyone with knowledge of similar conduct to come forward. Federal programs exist to protect whistleblowers and, in some cases, reward those whose information leads to big recoveries. As the Maryland case moves toward trial, it serves as a reminder that cheating on a government contract can have heavy legal consequences and officials are watching closely for signs of abuse.
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Two felony charges and the executive of two Maryland IT companies were charged with conspiracy to defraud the federal government
A Maryland tech business owner has been charged with conspiracy to defraud the federal government
