USDA Contractor Admits To Giving Gifts To Secure Contracts

WASHINGTON, DC — A Virginia man pleaded guilty in federal court recent to giving gifts to multiple officials at the U.S. Department of Agriculture in order to influence the awarding of more than $19.2 million in contracts to Communications Resource, Inc. (CRI).

Eric Schneider, a former vice-president at CRI, pleaded guilty on Nov. 6, in U.S. District Court for the District of Columbia, to one count of conspiracy to violate the Procurement Integrity Act and one count of obstruction of justice. CRI's corporate headquarters are located in Reston, Virginia.

Schneider admitted to giving USDA officials gifts in order to influence the awarding of contracts to CRI and another company he controlled. The gifts included Corvette wheels, concert tickets, PGA tour tickets, meals, alcohol, strip clubs, parking, concierge medical services, prescription drugs, and other cash tips, according to a U.S. Justice Department release.

Schneider also admitted, as part of a conspiracy, that he drafted or instructed CRI employees to draft procurement documents to favor the company in the awarding of a multi-million dollar contract. He then handed the documents to a USDA official to whom he'd given gifts for use in the procurement process. This gave the impression the documents had been prepared by the USDA. In addition, Schneider admitted to instructing CRI employees to destroy documents that could be responsive to a federal grand jury subpoena.

Although a sentencing date has not be set, Schneider faces a maximum penalty of five years in prison and a fine of up to $250,000 or twice the gain or loss of the offense. He also faces up to 10 years of imprisonment for obstruction of justice.

U.S. District Judge Carl J. Nichols is presiding over Schneider's case.