Big fraud scandal erupts at Toby Army Depot

By WILLIAM DOOLITTLE
Monroe Messenger
With the arrest of an electronics sales manager for bribing some Tobyhanna Army Depot officials, a widening scandal involving millions of dollars is being alleged by federal officials.
Thomas A. Marino, United States Attorney for the Middle District of Pennsylvania, has charged Kafu Stephen Chung with myriad counts of bribery and fraud.
Chung has pleaded guilty and has agreed to cooperate with the federal prosecutor by naming co-conspirators, “government project mangers and purchasing agents.”
The specific charges are
–conspiring with Army base officials to bribe them to secure business for his firm, Computer Giants of New York.
–fixing the competitive process with bribery to secure business for his firm.
–Chung and the unnamed “public officials acting on behalf of the United States Army” would take cash and “other considerations” to undermine the bidding process.
–The U.S. Army conspirators would provide sealed bid information the Chung.
–They also arranged for undamaged computers to be sent to Computer Giants for repair. Then Chung would resell the same computers back to the Army Base as new equipment.
–Chung also arranged for Computer Giant to bill the Army Base for “undelivered goods.”
Marino charges that the bribery scandal began in February of 2001 and continued through 2005, involved nearly $8 million paid to Computer Giants.
Chung, whose home address is not given in the criminal information, is not a U.S. citizen and faces deportation.