by Michael Rigert
Staff Writer

A Tooele Army Depot employee and a private contractor were arrested Friday by FBI special agents at their homes in Salt Lake on federal bribery charges.

Muntaser “Monty” Rashwan, 41, an environmental engineer at the depot’s Directorate of Public Affairs and Logistics, and Raed “Rudy” Labban, 41, made an initial court appearance Monday before U.S. Magistrate Judge Samuel Alba on charges of bribing a public official.

According to court documents, federal investigators claim Rashwan and Labban were involved in a kickback scheme in which Rashwan, who allegedly awarded depot government contracts to private companies, received monetary payments from Labban who owns Enviropro, Inc.

Between 1998 and 2002, the pair told investigators that Labban paid Rashwan approximately $150,000 in kickbacks through checks made out to a private business owned by Rashwan. During that time period, 10 depot contracts totaling $440,000 allegedly were awarded to Labban’s Enviropro Inc. by Rashwan.

The FBI claims in court documents that Rashwan purchased a Certificate of Deposit for $130,000 in 2003, and between the years 1999 to 2003, made wire transfers out of the U.S. to the Bank of Palestine and the Arab National Bank in Saudi Arabia in the total amount of $90,500.

Rashwan is a U.S. citizen and was born in the Gaza Strip, Israel. He has been employed at the Tooele Army Depot since 1990. In 1995. Rashwan began working in the depot’s public works and logistics department which included awarding government contracts for the depot.

Sabban is also a U.S. citizen and was born in Beirut, Lebanon.

On April 28, federal search warrants were executed by investigators and both men’s homes and Rashwan’s office at Tooele Army Depot were searched for evidence.

The investigation has included representatives from the FBI, the Army’s Criminal Investigation Division (CID), the Defense Criminal Investigation Service (DCIS), and the IRS, and in cooperation with Lt. Col. Karol Ripley, commanding officer at the depot.

Melodie Rydalch, a spokeswoman for the U.S. Attorney General’s Office in Salt Lake City, said although Labban has been released on his own recognizance, Rashwan remains in federal custody pending a detainment hearing today (March 4). She indicated Rashwan may be a flight risk and Judge Alba will make the determination whether or not to release the defendant.

“We will ask for his detention (at the hearing),” she said.

Rydalch said the next legal step would be to present the U.S. Attorney’s case against the two defendants to a federal grand jury either May 5 or May 11 at which time additional charges may be filed.
If convicted, Rydalch said both men could face up to 15 years in federal prison and be fined up to $450,000.

The federal investigation was launched by the Army CID in 2002 when depot authorities received an anonymous letter from a private contractor who alleged that Rashwan had offered him the award of government contract in exchange for monetary kickbacks. The writer also claimed that Rashwan was receiving kickbacks from other contractors.

Kathy Anderson, Tooele Army Depot spokesperson, said Rashwan was a general engineer and was placed on paid administrative leave on Wednesday, April 28. She said depot officials were officially notified of the federal investigation in early March.

“Managers of the Tooele Army Depot have already developed and put into place a new internal control process that will preclude this from happening again,” Anderson said.

e-mail: mrigert@tooeletranscript.com