Trial begins in Tobyhanna Army Depot computer scheme

The Times Tribune (Scranton PA) ^ | 3/31/2009 | Erin Nissley

[Born Conservative]

A Virginia man is on trial this week in federal court, fighting accusations that he participated in a large-scale kickback scheme that involved several Tobyhanna Army Depot workers.

Derrick Jackson, 47, of Stafford, Va., was indicted in March 2008 along with a Hazleton man in an 18-count indictment alleging conspiracy, public corruption, wire fraud and related charges.

Federal authorities began an investigation into contracts New York-based ComputerGiants.com had with Tobyhanna Army Depot.

From 2001 until 2005, ComputerGiants.com set up a slush fund for several people — including Mr. Jackson, who worked at Fort Belvoir Army Base in Virginia — who allegedly shipped computers and other equipment back to the company for unnecessary repairs. ComputerGiants.com would then resell that equipment to the depot.

All of the men indicted were in positions that required them to recommend vendors and contractors, Assistant U.S. Attorney John Gurganus said. He also said the slush fund was used to buy electronics, including iPods, televisions, printers and cameras.

Mr. Jackson and others allegedly gave bid information from other companies to ComputerGiants.com, allowing them to have an advantage when competing for government contracts.

Several others charged in the kickback scheme have pleaded guilty to conspiracy charges and are awaiting sentencing, according to court records.

Defense lawyers Michael T. Pritchard and Robert B. Nealon say Mr. Jackson was just following orders and had no idea there was a slush fund or that his co-workers or counterparts at the Army depot were taking kickbacks.

Proceedings began Monday in front of U.S. District Judge Edwin M. Kosik with jury selection and opening statements from the prosecutor and the defense. The trial is slated to last all week.

[rightwingextremist1776]

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