Tech business owner in Maryland indicted for conspiracy to defraud federal government

A tech executive and Maryland resident was indicted Monday in connection with an alleged scheme to defraud the federal government, according to the State's Attorney's Office. 

Victor Marquez, 53, owns two IT companies, according to court officials. He was charged with wire fraud after he allegedly rigged bids for government IT contracts. 

Two other IT sales representatives — 47-year-old James Briar of Virginia, and 59-year-old Robert Fay of Maryland — pleaded guilty in related cases, court officials said. 

Briar pleaded guilty in August to conspiracy to pay illegal kickbacks, and Fay pleaded guilty in October to conspiracy to pay illegal kickbacks and violating the Anti-Kickback Act, according to court records. 

"As the superseding indictment shows, defendant Victor Marquez and his co-conspirators broke trust with our military and stole millions of dollars from an agency that defends our homeland," Deputy Assistant Attorney General Omeed Assefi said. "Two of the defendant's co-conspirators have already pled guilty, and the Antitrust Division will not rest until Marquez is imprisoned."  

Indictment details alleged fraud

According to the indictment, Marquez and his co-conspirators used Marquez's access to sensitive procurement information to rig the bids to get large U.S. government contracts. 

The indictment alleges that his co-conspirators hid Marquez's involvement in the scheme in an effort to make sure he maintained his access to the sensitive information. 

He got compensation in the form of kickbacks for directing the contracts to his co-conspirators, who referred to the payments as the "Vic tax," according to court officials. 

During the alleged scheme, Marquez received more than $3.8 million in funds that were built into the government's purchase price, according to court records. 

"This kind of corruption distorts the competitive process, wastes taxpayer dollars, and undermines public trust in government contracting," said Maryland Attorney Kelly Hayes.