WATER INDUSTRY NEWS
Men convicted in water-equipment bribery scheme
Friday, February 20, 2009

ATLANTA — The owner of a Tennessee-based water treatment equipment company and a former civilian employee of the US Army were convicted in federal court in Atlanta on February 19 in a bribery scheme involving contracts to provide water to US troops overseas, according to federal prosecutors.


A February 19 press release from the US Attorney for the Northern District of Georgia, David E. Nahmias, said that Richard E. Long, 65, of St. Augustine, FL, and Mack S. Smith, 57, of Bladenboro, NC, were convicted by a federal jury after a three-week trial on multiple felony charges.


Nahmias said in the release that Long had worked as a civilian water and petroleum program manager for the Army Forces Command at Fort McPherson, near Atlanta, from 1996 through 2004. His duties included recommending which companies should be awarded water-related military contracts. Smith was the owner of WATEC, Inc., a Tennessee-based company that provided water treatment equipment, training and servicing.


According to an indictment handed down in February 2008, Long and Smith had an agreement in which Smith would make secret payments to Long in exchange for Long’s recommendations that water purification contracts for the military be awarded to WATEC, the US Attorney said. As a result, according to the US Attorney, WATEC, as a primary contractor or subcontractor, was awarded contracts worth more than $66 million, with one of these valued at more than $32 million. From 2001 to 2007, Smith made payments to Long totaling about $549,700, the release said.


Nahmias said that Long and Smith were each found guilty of multiple charges of bribery and wire fraud, and one count each of money laundering. Long was found innocent on additional charges of bribery and wire fraud, and Smith was found innocent on a charge of conspiracy. Each of the charges on which the men were convicted carries a potential sentence of extensive prison time and a fine. Sentencing will take place May 11 before US District Court Judge Clarence Cooper in Atlanta.


A third defendant in the case, Long’s wife, Debra L. Long, was acquitted on all charges, according to the US Attorney’s release.


To read the full US Attorney’s press release, click here.


This story was also reported in the Army Times. To read that article, click here.


For related information, click here.

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