Leesburg man sentenced in $33 million federal fraud case
Anthony R. Bilby, 40, pleaded guilty to federal charges of conspiracy to commit wire fraud and major government fraud in the Eastern District of Virginia.
According to a release from the Department of Justice, Bilby, in a statement of facts filed with his plea agreement, admitted that from April 2007 to November 2012 he participated in a conspiracy to get government contracts through fraud and misrepresentation. During the five-year period, during which he was employed by two service-disabled veteran-owned small businesses, Bilby caused employees at a nominal competitors to submit inflated bids for government procurements. Bilby then submitted bids on behalf of his employers.
Bilby also gained improper access to the procurement process by working with co-conspirators from within the United States government.
The co-conspirators would provide Bilby with internal cost estimates, enabling him to draft bids for himself and his competitors and helping his employers win contracts without actual competition.
One of Bilby's employers, with support from Bilby, paid 10 percent of its profits on a contract worth $24 million to the co-conspirators in the government.
In total, more than $33 million in contracts were awarded through fraudulent procurement practices.
As part of his plea agreement, Bilby agreed to cooperate in the investigation of others involved in the case. He also forfeited $1,065,103.90, his personal proceeds from the conspiracy.
One of his co-conspirators, Thomas S. Flynn, pleaded guilty on Oct. 2.
Bilby will be sentenced in February and faces up to five years in prison.
The case was prosecuted by Assistant United States Attorney Kosta S. Stojilkovich, while the investigation was a collaboration between offices of the inspector general for the Department of Homeland Security, the General Services Administration, the Small Business Association and the Department of Veterans Affairs, with assistance from DHS's Office of the Chief Security Officer, Cyber Forensic Branch.