A former civilian U.S. Army official on Wednesday pleaded guilty to taking part in a bribery and major fraud scheme tied to Army defense contracts in Hawaii, the Department of Justice said. The official, Carlos Duque, pleaded guilty to conspiracy, bribery and major fraud.
According to a plea agreement and court filing in U.S. District Court in Honolulu, the scheme corrupted the competitive process for a U.S. Army technology innovation lab in the Pacific. The filings say it ran from January 2021 to October 2022.
The filings say Duque conspired with two defense contractors, Brian Kent and Leonard Pick, to accept a bribe of about $1.25 million over five years. In return, Duque told prime contractors to award subcontracts to Kent and Pick’s company, the Justice Department said. He also helped them inflate government contracting costs so the bribe payments were covered, according to the department.
Duque received about $55,000 in bribes, the department said. The Army paid more than $3 million to Kent and Pick’s company.
Duque faces up to five years in prison and a fine of up to $250,000 on the conspiracy charge. On the bribery charge, he faces up to 15 years in prison, a fine of up to $250,000 or not more than three times the monetary equivalent of the bribe, whichever is greater, and disqualification from holding any office of honor, trust or profit under the United States. On the major fraud charge, he faces up to 10 years in prison and a fine of up to $5 million.
Duque also agreed to forfeit $55,166.70 under the plea agreement. A federal judge will decide his sentence after considering the U.S. Sentencing Guidelines and other legal factors. The judge will also decide any restitution to be paid to the Department of War.
A federal grand jury returned an indictment against Kent and Pick in May 2026. Their case is scheduled for trial on May 17, 2027, before Chief U.S. District Judge Derrick K. Watson. Indictments are allegations, and all people charged are presumed innocent unless and until found guilty in court.
Associate Attorney General Stanley E. Woodward, Jr. said fraud that deprives the military of free and fair competition “harms us all.” U.S. Attorney Ken Sorenson for the District of Hawaii said those who obtain military contracts through fraud “will be held accountable.”
The Antitrust Division’s San Francisco Office and the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case. The Defense Criminal Investigative Service, the Army Criminal Investigation Division and the General Services Administration Office of Inspector General assisted with the investigation.
The Justice Department’s Procurement Collusion Strike Force is a joint effort to combat antitrust crimes and related fraud that affect government purchasing and funding at the federal, state and local levels.