A the former senior director of the Washington Metropolitan Area Transit Authority has pleaded guilty to a nine-year fraud scheme in which he manipulated the agency’s procurement process to cut contract deals for his personal benefit.
Scottie Borders, 61, pleaded guilty to conspiracy to commit wire fraud in U.S. District Court for the District of Columbia on Thursday, admitting to facilitating fraudulent contracts with a New Jersey signaling company in exchange for valuables, such as NFL tickets, according to the Ministry of Justice. During the nine-year period from January 2011 to September 2020, WMATA paid the company, referred to only as “Company 1” in court documents, more than $1.3 million for items and services.
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Under the program, Borders would use its position as the primary point of contact to secure contracts and purchase agreements to ensure Company 1 was selected for lucrative deals, according to the DOJ. Borders entered into several agreements with Company 1, a producer and supplier of traffic signs and safety products, after it made “misrepresentations” to WMATA about the nature of the agreements.
For example, Borders and his co-conspirators were presenting falsified bids and contracts to WMATA officials from companies that either hadn’t submitted bids or were unaware their information was being presented to the agency, according to documents. judicial. This was done to ensure that WMATA would choose Company 1 to enter into lucrative contract deals over its competitors.
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After WMATA entered into agreements with Company 1, Borders would then submit orders that it “knew were unnecessary, substandard, and/or never supplied to WMATA,” according to the DOJ. Overall, WMATA paid the company over $1.3 million over the nine-year period for several reasons. These include purchases of bus stop signs, poles, flags, decals and tools.
A charge of conspiracy to commit wire fraud carries a maximum sentence of 20 years in prison and possible fines, although Borders is likely to only face 33 to 41 months in prison and a fine of up to 20 years. go up to $150,000, according to the DOJ. He is expected to be sentenced on January 19, 2023.