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10/3/2015 Government Subcontractors Convicted For Bribery | USAOAK | Department of Justice http://www.justice.gov/usaoak/pr/governmentsubcontractorsconvictedbribery 1/3 FOR IMMEDIATE RELEASE Friday, September 4, 2015 U.S. Attorneys » District of Alaska » News Department of Justice U.S. Attorney’s Office District of Alaska Government Subcontractors Convicted For Bribery Anchorage, Alaska U.S. Attorney Karen L. Loeffler announced that yesterday a federal jury in Anchorage convicted John Becker aka Jack Becker of bribing a public official. On August 27, 2015, ADA Station Communication, Inc. and Herschell Becker pled guilty to bribing a public official in connection with the same investigation. The offenses occurred in June and August 2014. ADA Station Communication, Inc., based in Crossville, Tennessee and Herschell Becker, 48, of Grandview, Tennessee, pled guilty to three counts of bribing of a public official. Jack Becker, 53, of Crossville, Tennessee was found guilty of two counts of bribing of a public official. ADA Station Communication, Inc. is a telecommunications company based in Crossville, Tennessee, which specializes in providing turnkey structured cabling infrastructures including analysis, design, engineering, installation, and maintenance of voice, video and data networks. ADA Station Communication has performed work on behalf of both federal and commercial entities. Jeff Becker founded the company in 1995. Herschell Becker has been the Vice President of ADA Station Communication since 1995. Jack Becker has been an employee of ADA Station Communication since approximately 2003. Jeff Becker, Herschell Becker, and Jack Becker are brothers. ADA Station Communication was awarded subcontracts to install and upgrade fiber optic cables on Joint Base Elmendorf Richardson (JBER) during 2014 and 2015. During the summer of 2014, ADA Station Communication was installing fiber optic cables on JBER under five contracts. On June 17, 2014, Herschell Becker and Jack Becker (hereinafter “the Beckers”) met with a United States Air Force Cable/Antenna Work Leader (hereinafter “Air Force official”) to complete quality assurance inspections on two of the five contracted project locations. During the inspections, the Air Force official discovered numerous discrepancies, informed the Beckers, and requested that the Beckers address and fix the issues.

Blog 117 Government Subcontractors Convicted For Bribery _ USAO- AK _ Depa

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Another case of Public Corruption in government subcontracting. \nBribery , fraud and corruption are becoming too popular among \nmilitary contractors and public officials.\n\n The Beckers would pay $60,000 to the  Air Force official to fix the discrepancies and another $10,000 if he would approve the \nwork  without the discrepancies being fixed.  But the \nAir Force official declined the offer and  reported to law enforcement \nthe act of bribery . During the investigation, the inspectors \ndiscovered numerous discrepancies. - PowerPoint PPT Presentation

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Page 1: Blog 117 Government Subcontractors Convicted For Bribery _ USAO-  AK _ Depa

10/3/2015 Government Subcontractors Convicted For Bribery | USAO­AK | Department of Justice

http://www.justice.gov/usao­ak/pr/government­subcontractors­convicted­bribery 1/3

FOR IMMEDIATE RELEASE Friday, September 4, 2015

U.S. Attorneys » District of Alaska » News

Department of Justice

U.S. Attorney’s Office

District of Alaska

Government Subcontractors Convicted For Bribery

Anchorage, Alaska ­ U.S. Attorney Karen L. Loeffler announced that yesterday a federal jury inAnchorage convicted John Becker aka Jack Becker of bribing a public official.  On August 27,2015, ADA Station Communication, Inc. and Herschell Becker pled guilty to bribing a public officialin connection with the same investigation.  The offenses occurred in June and August 2014.

ADA Station Communication, Inc., based in Crossville, Tennessee and Herschell Becker, 48, ofGrandview, Tennessee, pled guilty to three counts of bribing of a public official.  Jack Becker, 53,of Crossville, Tennessee was found guilty of two counts of bribing of a public official.

ADA Station Communication, Inc. is a telecommunications company based in Crossville,Tennessee, which specializes in providing turnkey structured cabling infrastructures includinganalysis, design, engineering, installation, and maintenance of voice, video and data networks. ADA Station Communication has performed work on behalf of both federal and commercialentities.

Jeff Becker founded the company in 1995.  Herschell Becker has been the Vice President of ADAStation Communication since 1995.  Jack Becker has been an employee of ADA StationCommunication since approximately 2003.  Jeff Becker, Herschell Becker, and Jack Becker arebrothers.

ADA Station Communication was awarded subcontracts to install and upgrade fiber optic cables onJoint Base Elmendorf Richardson (JBER) during 2014 and 2015.  During the summer of 2014,ADA Station Communication was installing fiber optic cables on JBER under five contracts.  OnJune 17, 2014, Herschell Becker and Jack Becker (hereinafter “the Beckers”) met with a UnitedStates Air Force Cable/Antenna Work Leader (hereinafter “Air Force official”) to complete qualityassurance inspections on two of the five contracted project locations.  During the inspections, theAir Force official discovered numerous discrepancies, informed the Beckers, and requested thatthe Beckers address and fix the issues.

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10/3/2015 Government Subcontractors Convicted For Bribery | USAO­AK | Department of Justice

http://www.justice.gov/usao­ak/pr/government­subcontractors­convicted­bribery 2/3

Evidence at trial showed that On June 18, 2014, Herschell Becker and Jack Becker offered$10,000 to the Air Force official to accept the work previously identified as deficient that theyperformed as subcontractors installing fiber optic cables on JBER.  During this meeting, theBeckers told the Air Force official they could “pad his pockets” and “the less people that know thebetter”.  The Beckers knew that the Air Force official would make the final decision on whether toaccept the work as complete and wanted the Air Force official to overlook the discrepancies.  TheBeckers told the Air Force official it would cost them $60,000 to fix the discrepancies and that theywould pay $10,000 to the Air Force official if he would approve the work without the discrepanciesbeing fixed.  The Air Force official declined the $10,000.  The Beckers again offered to pay the AirForce official $10,000.

On August 22, 2014, Herschell Becker and Jack Becker met with the Air Force official. Unbeknowst to the Beckers, the Air Force official had reported to law enforcement the Beckers’offer of $10,000, and was now acting at the direction of the Air Force Office of SpecialInvestigations.  During the August 22, 2014 meeting, the Beckers and the Air Force officialdiscussed the prior offer to bribe the Air Force official.  Herschell Becker acknowledged that it wasa big risk to offer to bribe the Air Force official, but that he would do it again because it cost him$60,000 to repair the problems and he would have much rather have given the Air Force official$10,000.  The Beckers also mentioned that they were bidding on others jobs in Alaska and wouldlike to win the business.  The Beckers and the Air Force official also discussed the current status ofthe project and the failed test results on the fiber optic cables installed by ADA StationCommunication.  Herschell Becker acknowledged that they would not be able to pass the testingrequirement at the 1490 nm wavelength.  Herschell Becker and Jack Becker then described theadditional costs they would incur if they had to remain in Alaska for a longer period of time shouldthe Air Force official require them to try to fix the cables.  Herschell Becker then offered the AirForce official $5,000 cash to accept ADA Station Communication’s deficient fiber optic installationwork as is.  The Air Force official, as directed by law enforcement, agreed.  Herschell Beckerdirected the Air Force official to send him his address for payment.     

On August 27, 2014, Jack Becker spoke with the Air Force official regarding the logistics of the$5,000 payment.  Referring to the August 22 conversation, Jack Becker said that Herschell Beckerwould like to get the Air Force official’s address.  Jack Becker indicated that ADA StationCommunication needed the Air Force official to accept the work they did.  Jack Becker also told theAir Force official that he knew there was more work coming up next summer and that ADA StationCommunication was going to try to bid that too, so things could get better down the road.  Laterthat day, on August 27, 2014, Herschell Becker told the Air Force official that he would get the fullpayment the next day in person and that if the Air Force official could help ADA StationCommunication win the bid for the upcoming work next year, it would be well worth his while.

On August 28, 2014, Herschell Becker texted the Air Force official that Jack Becker would be“getting with him today”, and again said that if the Air Force official could put in a good word forADA Station Communication to the review team for next year’s work, it would be well worth hiswhile.    

On August 28, 2014, an ADA Station Communication check signed by ADA StationCommunication’s Accounting Manager in the amount of $6,500 was negotiated for petty cashfunds.  The ADA Station Communication Accounting Manager then wired $5,000 cash viaMoneyGram from a Wal­Mart in Crossville, Tennessee to Jack Becker in Anchorage, Alaska.  JackBecker picked up the $5,000 cash from a Wal­Mart in Anchorage.  Jack Becker then concealed the

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10/3/2015 Government Subcontractors Convicted For Bribery | USAO­AK | Department of Justice

http://www.justice.gov/usao­ak/pr/government­subcontractors­convicted­bribery 3/3

USAO ­ AlaskaMilitaryPublic Corruption

Updated September 9, 2015

Wal­Mart envelope of $5,000 cash in a set of large papers.  Jack Becker hand delivered the$5,000 cash to the Air Force official that afternoon.

Sentencing has been scheduled for November 6, 2015 and November 10, 2015, in Anchorage. The maximum penalty for Herschell Becker and Jack Becker for each count of conviction is up to15 years in prison, three years’ supervised release, and a fine of up to $250,000.  The maximumpenalty for ADA Station Communication, Inc. is up to five years’ probation, and a fine of up to thegreater of $500,000 or twice the gross gain or loss from the offense.  In addition, the United Stateswill be seeking restitution on behalf of the United States Air Force in the approximate amount of$345,000.00.

The investigation of this case began when the public official reported to law enforcement that thesubcontractors had offered him $10,000 to look the other way on faulty work and accept theirdeficient work on behalf of the United States Air Force.  This case was investigated by the AirForce Office of Special Investigations.  The case was prosecuted by Assistant U.S. AttorneyYvonne Lamoureux.