TUESDAY May 4, 2004

Pair charged in alleged Depot kickback scheme

An environmental engineer for the Tooele Army Depot allegedly received more than $100,000 in kickbacks for awarding government construction contracts to a friend, according to a federal indictment unsealed Monday.
   
Salt Lake City residents Muntaser Rashwan and Raed Labban appeared before U.S. Magistrate Samuel Alba facing charges of bribery of a public official. In exchange for half of the profits, Rashwan allegedly funneled government contracts to Labban's company Enviropro through his post in the Depot's public works department since March 1998.
   
The Army Criminal Investigative Division started an investigation in April 2002 after receiving an anonymous letter from a contractor claiming Rashwan promised contracts in exchange for money. The FBI, IRS and the Defense Criminal Investigative Service subsequently helped with the investigation, which culminated in a raid of Rashwan's and Labban's homes last week.
   
On Wednesday, both men admitted to the scheme, according to court documents, with Labban saying he has paid Rashwan about $150,000. The potential punishment is a fine of up to $450,000 and up to 15 years in prison.
   
Labban has been released on his own recognizance and Rashwan is scheduled to appear in court today for a detention hearing.
   
-- Matt Canham