September 23, 2011
Contact: SA Susan Wolf
Phone Number: (202) 305-8500
Former Army Reserve Captain Sentenced To 120 Months In Prison For Soliciting $1.3 Million In Bribes And Conspiring To Traffic Heroin
WASHINGTON, D.C. - A former captain in the U.S. Army Reserve stationed in Afghanistan was sentenced today to 120 months in prison for soliciting $1.3 million in bribes from contractors involved in U.S.-funded reconstruction efforts and participating in a conspiracy to traffic heroin from Southeast Asia.
The sentence was announced by Drug Enforcement Administration Special Agent in Charge Ava A. Cooper-Davis, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Sidharth Handa, 32, was sentenced by U.S. District Judge Anthony J. Trenga in the Eastern District of Virginia. Handa was also ordered to pay $315,000 in restitution. Handa, of Charlotte, N.C., pleaded guilty on June 21, 2011, to soliciting and accepting bribes while serving as a public official and to conspiring to distribute a kilogram of heroin.
According to court records, Handa was stationed in Afghanistan from March through November 2008 and served as the liaison to the local governor and engineers on the Kunar Province Reconstruction (PRT). In that position, Handa assisted in awarding reconstruction project contracts funded by the U.S. government to local contractors through a competitive bidding process. Handa admitted that almost immediately upon his arrival in Afghanistan, he became engaged in a scheme to secure bribes from contractors who sought to secure large PRT construction projects. With the help of an Afghan interpreter, Handa typically solicited bribes equal to 10 percent of the overall contract value, though the actual bribe payment was negotiated based on the contractor’s ability to pay. The total value of bribes contractors agreed to pay amounted to $1,323,000, and Handa and the interpreter collected $315,000, which they split evenly.
Handa admitted that after leaving Afghanistan, he tried to collect over $1 million in bribe money that contractors had pledged to pay. A cooperating (CW) offered to help Handa collect the money, and through 2010 and early 2011 Handa provided the CW with details of outstanding bribes and other relevant facts to help secure the promised bribes. During the course of these conversations with the CW, Handa indicated that he knew people in the drug business and he and the CW developed plans to sell kilogram quantities of Southeast Asian heroin to Handa’s drug contacts.
According to court documents, on April 7, 2011, Handa met with the CW and an undercover officer in a northern Virginia hotel, where Handa received what he believed was $500,000 in collected bribe payments and acknowledged that he knew the right people to receive the kilogram of heroin the undercover officer showed him. Law enforcement arrested Handa as he was leaving the hotel with the bribe money, a loaded handgun and a spreadsheet detailing specific bribe amounts paid and outstanding.
This case was investigated jointly by member agencies of the International Contract Corruption Task Force, including the Special Inspector General for Afghanistan Reconstruction, the FBI’s Washington Field Office and the Defense Criminal Investigative Service, and also by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Kosta Stojilkovic and Dennis Fitzpatrick of the Eastern District of Virginia and Senor Trial Attorney David Bybee of the Criminal Division’s Fraud Section.