In re IAP World Wide Services, Inc. (2015)
United States v. James M. Rama (E.D. Va. 2015)

• Case Name
• In re IAP World Wide Services, Inc. (2015)
  United States v. James M. Rama (E.D. Va. 2015)

• Date Filed
• 05/16/2015

• Enforcement Agency
• DOJ

• Countries
• Kuwait

• Foreign Official
• Officials from Kuwait’s Ministry of Interior.

• Date of Conduct
• 2004 to 2008

• Nature of Business
• IAP Worldwide Services, Inc. is a Delaware corporation headquartered in Cape Canaveral, Florida.  IAP provides facilities management, contingency operations, and professional and technical services in contracting capacities to the U.S. military and civilian agencies.  IAP operates in multiple foreign countries around the world, including Kuwait.  James M. Rama served as Vice President of Special Projects and Programs from 2005 to 2007 for IAP. After 2007, Rama worked as a consultant to IAP.

• Influence to be Obtained
• According to an agreed upon statement of facts, beginning in 2004 the Kuwaiti Ministry of Interior (“MOI”) initiated the Kuwait Security Program (“KSP”) to provide nationwide surveillance capabilities for several Kuwaiti government agencies.  The KSP would be divided into two phases. Phase I involved a planning stage and Phase II involved the construction stage of the project.  It was understood that the revenues generated by Phase II would be greater than those generated by Phase I.
  
  In or about November 2005, IAP and Rama allegedly received non-public indications from the MOI that their bid would be selected for the Phase I contract.  Thereafter, the DOJ explained that, at the direction of MOI and an unnamed “Kuwaiti Consultant,” Rama and others established a shell entity named “Ramaco” to bid on the Phase I contract.  According to the DOJ, this was done to allow IAP to hide its involvement in Phase I and participate in Phase II without any apparent conflict of interest.  Ramaco won the KSP Phase I contract for approximately $4 million.  According to the DOJ, IAP and Rama agreed to divert $2 million of the revenues from the Phase I contract to the Kuwaiti Consultant, who, in turn, would use the money to bribe MOI officials.  The alleged bribes were intended to ensure IAP retained the Phase I contract and was awarded the Phase II contract.
  
  To execute the alleged scheme, IAP and Rama also used an unnamed “Kuwaiti Company,” a general trading company established under the laws of Kuwait, to make payments to the Kuwaiti Consultant.  The DOJ asserts that IAP and Rama knew that Kuwaiti Company inflated its invoices to IAP by charging IAP for the total amount of both legitimate services rendered by Kuwaiti Company and payments being funneled to the Kuwaiti Consultant.  In total, from September 2006 to March 2008, IAP and Rama were accused of funneling $1,783,688 in illicit payments to the Kuwaiti Consultant for use as bribes.

• Enforcement
• On June 16, 2015, the DOJ announced that it settled charges against IAP through a non-prosecution agreement.  In exchange, IAP agreed to pay a monetary penalty of $7.1 million.  On the same day, Rama pleaded guilty to one count of conspiracy to violate the FCPA.  Rama was sentenced on October 15, 2015 to 120 days in prison followed by a two-year period of supervised release.  Rama was not ordered to pay a criminal fine or restitution.

• Amount of the Value
• 1783688

• Amount of Business Related to Payment
• Not Stated

• Intermediary
• Consultant; Shell Entity.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 7,100,000

• Compliance Monitor
• No

• Reporting Requirements
• Yes

• Case is Pending?
• No

IAP World Wide Services, Inc. 

• Citation
• In re IAP WorldWide Services, Inc. (2015);

• Date Filed
• 07/16/2015

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Non-Prosecution Agreement

• Defendant Jurisdictional Basis
• Domestic Concern

• Defendant's Citizenship
• United States

• Individual Sanction
• $7,100,000 Criminal Penalty.

James M. Rama 

• Citation
• United States. v. Rama, No. 1:15-CR-143-GBL (E.D. Va. 2015).
   

• Date Filed
• 06/15/2015

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern

• Defendant's Citizenship
• United States

• Individual Sanction
• 120-Days Imprisonment.