Four Men Charged In Department Of Defense Kickback And Bribery Scheme

U.S. Attorney for the Eastern District of Virginia Dana J. Boente announced Thursday four men were indicted for a kickback and bribery conspiracy involving the Department of Defense’s Office of Inspector General.

Fifty-two-year-old William S. Wilson of Florida, 56-year-old Timothy R. Donelson of Georgia, 37-year-old Ronald A. Capallia of Alabama and 42-year-old Matthew Kekoa LumHo of Fairfax Station were named as defendants in the indictment.

PrisonDonelson and Capallia received hundreds of thousands of dollars in bribery money from Wilson in exchange for providing his companies special treatment in connection with government contracts. Capallia and Donelson were employed at a telecommunications company that was awarded a “prime contract” to provide data and voice services to the Department of Defense’s Office of Inspector General, according to court documents.

Donelson awarded subcontracts to Wilson’s company to provide information technology-related support services to DOD Office of Inspector General. The company specialized in construction, not information technology (IT). Capallia caused his employer to order computer hardware and software on multiple occasions from Wilson’s company, even though it never specialized in those items.

LumHo also received tens of thousands of dollars from Wilson in exchange for official acts that helped Wilson’s companies. LumHo placed various bogus orders the prime contract awarded to Capallia and Donelson’s employer. This resulted in Wilson’s company received a continue flow of revenue from their employer.

The government was billed for the supplies ordered from Wilson’s company, resulting in Wilson receiving substantial profits. It was determined that Wilson’s companies never provided the United States no value. Through bogus invoices, Wilson paid Donelson’s side business hundreds of thousands of dollars in payroll payments to Capillia’s spouse. Wilson also purchased two vehicles for Capillia and made particle payments for two vehicles for Donelson.

Donelson, Wilson, LumHo and Capallia were charged with conspiracy to commit wire fraud and wire fraud, which both carry a maximum 20-year prison sentence. The bribery charge carries a maximum 15-year prison sentence and false statement charge carries a maximum 5-year prison sentence.

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