© AP Photo/ J. David Ake
According to the indictment, Marshak falsified documents to make it appear that certain FMF contracts were competitively bid, that no non-US content was used in the contracts and that no commissions were paid.
"Yuval Marshak, a former owner and executive of an Israel-based defense contractor, carried out three separate schemes between 2009 and 2013 to defraud the Foreign Military Financing (FMF) program and used a company in the United States to launder some of the proceeds of his fraud," the release stated. Marshak had arranged to receive commissions, which he funneled through a Connecticut-based company owned by a relative, the Justice Department said.
Two US companies have already settled charges with the Justice Department in connection with the FMF contracts, the release added.
Earlier this year, the New Jersey-based defense contractor Octal Group agreed to pay $460,000 in fines and restitution for covering up an agreement with Marshak. A second company, Hale Products, Inc. paid more than $60,000 and agreed to cooperate with the Justice Department investigation. In addition to fines, Marshak faces a maximum prison sentence of 20 years for wire and mail fraud charges, ten years for major fraud against the US government and 20 years for international money laundering.
No! That could NEVER happen. And the Billions of dollars Israel is taking from the U.S. is not fraud??