A man who admitted to offering bribes to land multimillion-dollar, Arsenal-Island-based Iraq war contracts but who breached his plea deal with prosecutors by hiding more than $7 million from federal authorities will spend 15 more months behind bars than his original sentence.
Mohammad Shabbir Khan went to prison after pleading guilty in June 2006 to fraud, money-laundering conspiracy and making a false statement. Witness-tampering charges were dismissed as part of the plea deal.
However, as Khan's prison time came to an end, the court ruled the deal Khan struck with officials was violated because he transferred $7.3 million from a bank in Dubai to a bank account in his brother's name in Pakistan in August 2006, despite statements to authorities that he could not get access to the money.
He was recently sentenced to 15 more months behind bars by Judge Joe B. McDade in U.S. District Court for the Central District of Illinois. He originally was sentenced to four years in prison for his crimes, in December 2006. He was in the process of being released when the government moved to rescind the plea agreement.
Authorities rarely request a plea agreement be rescinded.
"While Shabbir Khan was awaiting sentencing in 2006, he planned and executed a sophisticated scheme to obstruct justice by secretly transferring to a family member in Pakistan millions of dollars he was obligated to produce under the terms of his plea agreement. Khan recruited his brother Zahid to assist him, and utilized his son Shazib and his defense lawyers to deceive the Court, the Probation Office, and the United States Attorney's Office," the prosecution's sentencing memo says.
It continues: "In 2006, Khan peddled powers of attorney for empty bank accounts and ruse trips to Dubai to try to deceive the Court into believing that he was making a good faith effort to comply with his plea agreement. Now, even after several years in prison, and a hearing that exposed his fraud, Khan gins up a consultant's report, files a frivolous lawsuit, and gallingly offers this to the Court as evidence of his innocence. Most disturbing of all is Khan's pattern and practice of using attorneys to perpetrate these frauds. Ultimately, what the Court is seeing are the actions of a defendant who is incapable of respecting the rule of law, or conforming his behavior to it."
Khan, a manager for Tamimi Global Co., provided a KBR manager with a prostitute and $133,000 in exchange for multimillion-dollar dining hall contracts in Kuwait and Iraq overseen by an office on Arsenal Island, officials said.
He was arrested in Rock Island after coming here to talk with federal authorities.
Documents indicate that federal officials have not been able to acquire the $7 million.
Posted in Crime-and-courts on Friday, November 20, 2009 11:00 pm | Tags: Iraq War, Rock Island Arsenal, Mohammad Shabbir Khan, Fraud, Money Laundering, Joe B. Mcdade, Kbr, Tamini Global, Zahid Khan, Federal Contracts
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