A former civilian U.S. Army official has pleaded guilty in Honolulu to conspiracy, bribery and major fraud, admitting he traded subcontracts at an Army technology innovation lab in the Pacific for a promised $1.25 million in bribes — a scheme that steered more than $3 million of Army money to two contractors' company.

Source: U.S. Department of Justice, Office of Public Affairs

Carlos Duque entered the plea under a plea agreement and an information filed in the U.S. District Court in Honolulu, Hawaii. The Justice Department announced the plea this week; local Honolulu coverage by KHON2 reported the same guilty plea and the $3 million contract figure.

Source: KHON2, Honolulu

How the kickback scheme worked

According to the plea agreement, from January 2021 to October 2022 Duque conspired with defense contractors Brian Kent and Leonard Pick to accept a bribe of approximately $1.25 million, to be paid over five years. In return, Duque told prime contractors to award subcontracts to Kent and Pick's company — work connected to a U.S. Army technology innovation lab in the Pacific — and he facilitated the fraudulent inflation of government contracting costs so that the inflated bills themselves covered his bribe payments. In the end Duque actually received approximately $55,000 in bribes, while the United States Army paid more than $3 million to Kent and Pick's company.

'Fraud that deprives the U.S. military of free and fair competition for government contracts harms us all,' said Associate Attorney General Stanley E. Woodward, Jr. 'Because of prosecutions like this, Americans can trust that the Department of War and its warfighters maintain the highest standards of integrity. We expect their contractors to do the same.'

'Those who commit fraud on defense contracts don't just steal from the military or taxpayers; they threaten the public's confidence in government institutions and hurt our military readiness,' said Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department's Antitrust Division, pointing to the work of the Procurement Collusion Strike Force, the joint task force that pursues bid-rigging and related fraud in government procurement.

The contractors still face trial

Duque's plea does not end the case. A federal grand jury indicted Kent and Pick in May 2026, and their case — United States v. Brian Kent, et al., No. 26-CR-00047-DKW in the District of Hawaii — is scheduled for trial on May 17, 2027, before Chief U.S. District Judge Derrick K. Watson. The Justice Department stresses that an indictment is only an allegation and that Kent and Pick are presumed innocent unless and until they are found guilty in court.

Source: U.S. Department of Justice, Office of Public Affairs

For his own part, Duque faces a maximum of five years in prison and a fine of up to $250,000 on the conspiracy charge; up to 15 years, a fine of up to $250,000 or three times the value of the bribe, and disqualification from holding any federal office, on the bribery charge; and up to 10 years and a fine of up to $5 million on the major fraud charge. He has agreed to forfeit $55,166.70. A federal district judge will set the actual sentence after considering the U.S. Sentencing Guidelines and other statutory factors, as well as any restitution owed to the Department of War.

Who investigated the case

The investigation was carried out with the Defense Criminal Investigative Service (DCIS) of the Department of War's Office of Inspector General, the Department of the Army Criminal Investigation Division, and the General Services Administration's Office of Inspector General, with the FBI also among the partners quoted by the department. The prosecution is being handled by the Antitrust Division's San Francisco Office together with the U.S. Attorney's Office for the District of Hawaii. 'Americans work hard for their money and have every right to expect that their tax dollars will not be diverted through fraudulent schemes,' said U.S. Attorney Ken Sorenson for the District of Hawaii. FBI Honolulu's Acting Special Agent in Charge Ryan C. Noonan called the plea a reflection of 'the strength of our partnerships in safeguarding government resources.'

What happens next

Duque now awaits sentencing in Honolulu; no sentence has been imposed yet, and the court will also decide any restitution. Kent and Pick's trial is set for May 17, 2027. The Justice Department notes that whistleblowers who voluntarily report original information about antitrust and related offences that lead to at least $1 million in fines or recoveries may qualify for rewards of 15 to 30 percent of the money collected under its Antitrust Whistleblower Rewards Program. For taxpayers — including the many Punjabi-American families whose relatives serve in or supply the U.S. military — the case is a concrete example of how a single insider's steering decision can quietly tax every honest contractor and every dollar of a defense budget.