Pentagon Officials Get 24 Years in Fraud
Millions Demanded in Cash, Favors From Minority Firms Seeking Contracts
from the Jerry Markon story in the Washington Post 12/13/03, page B03)
Mr. Robert L. Neal (black male, 50 yrs. old, living in Bowie, MD - a DC suburb) was
appointed by Bill Clinton in June 1996 to direct the Pentagon's office of Small and
Disadvantaged Business Utilization (SABDU).
Previous Racial Preference Posts
Held by Mr. Neal:
- Associate Administrator for the
GSA's Office of Enterprise Development (administering preference programs to non-white and
women owned businesses seeking to participate in GSA contracts)
- Associate Deputy Administrator for
the SBA's racial preference contracting program
- Numerous racial preference positions
with the Office of Management and Budget (OMB).
Mr. Francis D. Jones Jr. (black male, 40 yrs. old, living in Fort
Washingont, MD - a DC suburb) was Neal's assistant at the Pentagon's SADBU office.
"Two former high-level Pentagon officials were sentenced yesterday to more than 24
years in prison for a multimillion-dollar bribery scheme that prosecutors called the most
serious case of defense procurement corruption since the 1980s." [The 1980s
'Operation Ill Wind' resulted in over 60 convictions for corruption in Pentagon
"Robert L. Neal Jr. and Francis D. Jones Jr., both 51, will each serve 24 years and
four months in prison. Each was also ordered to forfeit $2 million in Rolex watches,
homes, automobiles and other ill-gotten gains.
"A federal jury in Alexandria convicted the two men in July of charges that they
demanded -- and received -- more than $1 million in cash, as well as sexual favors and
gifts, in exchange for helping minority-owned companies secure government contracts.
... Prosecutors said the scheme involved accepting gifts, including expensive gold
watches and the services of prostitutes that a defense contractor provided the men while
Neal and Jones were at a small business conference in the Virgin Islands.
"Neal formerly headed the Defense Department's influential Office of Small and
Disadvantaged Business Utilization ... Jones was his executive assistant.
"In an emotional plea for leniency, Neal told U.S. District Judge James C. Cacheris:
"They just don't get it. The government just doesn't get it . . . For 27 years, I
have sacrificed for the federal government in providing assistance to small businesses. I
have given up my family life for small business."
"Paul J. McNulty, the U.S. attorney in Alexandria, said: 'These defendants were
entrusted with a mission to serve disadvantaged people and instead used their positions to
serve themselves. This case involved a despicable breach of trust'
"Neal headed his Defense Department office from 1996 to 2001. He was appointed to the
post by President Bill Clinton.
"... Assistant U.S. Attorney Matthew W. Friedrich ... told the court that the penalty
should be severe. 'These defendants victimized the very minority contracting firms whose
interests they were supposed to protect,' he said."
Last known link to the complete Wash Post story:
Ex-Pentagon Officials Sentenced in
Millions Demanded in Cash, Favors From Minority Firms Seeking Contracts
from the Justin Bergman Associated Press story as it appeared in Newsday 12/12/03)
"ALEXANDRIA, Va. -- Two former top Pentagon
officials each were sentenced Friday to 24 1/3 years in prison for taking more than $1
million in bribes and accepting prostitutes from government contractors.
"Robert Lee Neal Jr., 51, and Francis Delano Jones Jr., 51, also were ordered to
jointly pay $1.75 million in restitution. The Maryland men were convicted in U.S. District
Court in July of conspiracy, extortion, money laundering, witness tampering and
obstruction of justice.
"Neal was appointed by President Clinton in 1996 to serve as director of the
Pentagon's office of Small and Disadvantaged Business Utilization (SADBU), which helps
minority-owned businesses obtain defense contracts. Jones, his top assistant, joined the
office in 1999.
"Federal prosecutors said the men demanded bribes as high as $100,000 in certain
cases and received $1.1 million in bribes and other illegal funds from [minority-owned]
businesses seeking government contracts.
"Neal was unrepentant. 'The government doesn't get it,' he told federal judge
James C. Cacheris. 'I have given up my family life for small businesses. ... That was my
job, helping small businesses to gain access. That's what I was doing.' "
"Prosecutors said Neal and Jones laundered much of the money they received through a
sham company and offshore accounts."
Last known link to the complete AP story:
|Corrupt Pentagon Officials Rake Profits from Racial
Quota Scam (10/19/02)
Times Headline: "Ex-officials accused of corruption"
(Excerpted from the
Jerry Seper story in the Washington Times 10/19/02)
"Two former high-ranking Pentagon officials in the Clinton administration were
arrested yesterday [10/18/02] on charges of extortion, bribery, money-laundering, and
witness tampering in a suspected scheme involving the awarding of contracts to minority
firms. U.S. Attorney Paul J. McNulty said Robert L. Neal Jr., 50, of Bowie, and
Francis D. Jones Jr., 40, of Fort Washington, are accused of having used for "their
own private enrichment" their management positions at the Pentagon's Office of Small
and Disadvantaged Business Utilization (SADBU), a $28 million annual program.
"The suspected scheme, according to Mr. McNulty, netted the two men more than $1.1
million in illicit profits.
"[Officials of the Pentagon's Small and Disadvantaged Business Utilization office,
Mr. Neal and Mr. Jones] took advantage of the very disadvantaged business people
[non-whites] whose interests they were supposed to promote," according to prosecutor
"[The Small and Disadvantaged Business Utilization program] SADBU is the office
within the Defense Department chiefly responsible for the development and promulgation of
policies and management initiatives designed to ensure that small businesses [owned by
minorities or persons of color], small disadvantaged businesses [owned by minorities or
persons of color], women-owned small businesses, historically black colleges and
universities and minority institutions were given an equal opportunity [i.e., racial
preference] to compete for Defense Department contracts.
According to the Washington Times, the U.S. Attorney's charging documents stated that Mr.
Robert L. Neal was in charge of a $28 million yearly budget, and both he and his
assistant, Mr. Francis D. Jones were in a position to exert significant influence over
which non-white contractors were able to submit bids to the Pentagon and the Department of
The Times reports: "According to the affidavit, Mr. Neal and Mr. Jones, both of
whom are black, engaged in a wide range of criminal activities during their tenure at the
Pentagon, using their positions as leverage to receive illegal extortion payments, bribes
and gratuities from minority or disadvantaged Defense Department contractors seeking to
participate in the preference programs. The affidavit said the two men
"coordinated their illegal activities and worked together as partners,"
conspiring with others in a sophisticated scheme to launder the proceeds of their illegal
activities through phony companies, offshore bank accounts and multilayered sham
from the Jerry Seper story in the Washington Times 10/19/02)
Last known link: http://www.washtimes.com/national/20021019-77594800.htm
END of Pentagon / DoD News Page