November 18 2011 Copyright 2011 Business Research Services Inc. 301-229-5561 All rights reserved.

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Contractors Charged with Bilking Air Force

A sham company allegedly overcharged the Air Force by more than $6 million over a six-year period.

A federal grand jury in San Antonio has indicted three owners of Enterprise and Deployment LLC, which served as a subcontractor at Brooks-City Base, San Antonio. According to the indictment, it was a case of “contractors watching contractors.”

The U.S. Attorney’s office said one of the owners of E&D, Donald Dean Brewer, was a contractor serving as program manager for the Medical Systems Infrastructure Modernization program. He is charged with conspiring with his wife, Sherri Lynn Brewer, and an executive of another contractor, James McKinney, to create E&D as a sham subcontractor and overbill the government for work on IT and telephone systems at Air Force installations. Brewer’s position enabled him to approve the fraudulent invoices.

All three are charged with one count of conspiracy to defraud the United States, twelve counts of wire fraud and four counts of major fraud.

The San Antonio Express-News reported that a former commander of the Air Force Medical Support Agency at Brooks-City Base, retired Col. Sidney Brandler, pleaded guilty in January to knowing about the scheme and failing to report it. He is cooperating in the investigation.

The newspaper said the Air Force proposed to debar E&D and its owners in 2007, but they successfully appealed.


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