Former Intelligence Community Contractor Pleads Guilty to Accepting Kickbacks

Baltimore, Maryland - A former intelligence community contractor pled guilty to conspiracy charges in federal court in connection with a kickbacks scheme.

David Duggin, 55, of Orrtanna, Pennsylvania, is charged with conspiring to commit offenses against the United States by soliciting and accepting kickbacks.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Associate Attorney General Stanley Woodward; Acting Deputy Assistant Attorney General Daniel Glad, Justice Department, Antitrust Division; Acting Special Agent in Charge Allison Russo, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office; and Special Agent in Charge Jimmy Paul, FBI Baltimore Field Office.

According to court documents, Duggin and his co-conspirators corruptly misused his on-site access to sensitive information at an intelligence agency. The former senior systems engineer and on-site contractor used his access to enrich himself and others by illegally obtaining government contracts for millions of dollars of hardware and software procured by U.S. government customers. Duggin's co-conspirators paid him at least $510,000 in illegal kickbacks in exchange for him influencing the procurement process in favor of his co-conspirators. The conspiracy thwarted the competitive bidding process for the U.S. from at least June 2018, through at least April 2024.

"Mr. Duggin took advantage of his position to enrich himself and his co-conspirators. Our office will not tolerate this greedy, deceitful behavior that, if unchecked, can lead to an erosion of public trust and impact on our national security," Hayes said. "The U.S. Attorney's Office will not hesitate to hold accountable any individual who attempts to defraud our government."

"Mr. Duggin exploited his position as a government contractor in the intelligence community at the expense of taxpayers," Woodward said. "The Antitrust Division and its law enforcement partners will continue to hold those who seek profit through fraudulent schemes, accountable."

"The defendant broke faith with the men and women of the United States Intelligence Community - who work tirelessly and often anonymously in defense of our nation - to enrich himself with hundreds of thousands of dollars in kickbacks," Glad said. "The defendant now faces years in prison for corrupting a competitive procurement process backing our national security."

"Mr. Duggin betrayed the trust placed in him by exploiting his access to sensitive government systems to steer contracts for personal gain," Russo said. "This outcome reflects the strong partnership between DCIS, our federal investigative counterparts, and the Department of Justice, and underscores our shared commitment to safeguarding the integrity of the Department of War and the broader Intelligence Community."

"David Duggin repeatedly put himself before American taxpayers who trusted him to act on their behalf and for their benefit," Paul said. "The FBI will continue to work with our law enforcement and government partners to hold accountable those seeking to profit through fraud and deception."

Duggin is facing five years in federal prison for conspiring to commit an offense against the United States by accepting illegal kickbacks. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Hayes commended the DCIS and FBI for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Matthew P. Phelps and Matthew Shea, along with Trial Attorneys Elizabeth French, Anna Wang, and Ronald Fiorillo, Antitrust Division's Washington Criminal Section, who are prosecuting this federal case.

The Justice Department's Procurement Collusion Strike Force (PCSF) is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government - federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to https://www.justice.gov/procurement-collusion-strike-force.

Anyone with information in connection with this investigation can contact the PCSF at the link listed above. Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected. For more information on the Antitrust Whistleblower Rewards Program, including a link to submit reports, visit https://www.justice.gov/atr/whistleblower-rewardsLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link..

For more information about the Maryland U.S. Attorney's Office, its priorities, and resources available to report fraud, please visit justice.gov/usao-md and justice.gov/usao-md/report-fraud.

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