Federal prosecutors accuse Maryland IT owner of rigging contracts.
A federal case in Maryland has brought fresh attention to fraud tied to government contracts after prosecutors announced new charges against the owner of two IT companies. The case centers on Victor Marquez, a Maryland IT executive accused of working with others to cheat the federal government out of millions of dollars by fixing bids and taking secret payments. According to court records, a federal grand jury returned an updated indictment in Baltimore that expands on earlier charges and lays out a detailed plan to steer contracts in exchange for cash.
Prosecutors say Marquez used inside access to sensitive government information to control how certain IT contracts were awarded. These contracts were linked to major federal agencies, including those tied to national defense. By knowing what the government planned to buy and how much it was willing to pay, Marquez and others were able to decide ahead of time who would win the work. Competing companies were shut out, not because they lacked skill or value, but because the process had already been set behind closed doors.
The indictment claims Marquez worked closely with sales representatives and executives from other IT firms. In return for directing contracts their way, he received kickbacks that were quietly added into the prices charged to the government. Those involved allegedly used coded language to describe the payments, calling them a “tax” tied to Marquez’s first name. Over time, prosecutors say this scheme led to more than $3.8 million being built into government purchase prices, money that ultimately came from taxpayers.
Two people connected to the case have already admitted wrongdoing. James Briar, an IT sales representative, pleaded guilty earlier this year to conspiracy related to illegal payments. Robert Fay, an IT sales executive, also pleaded guilty to paying kickbacks and breaking a federal law meant to protect honest contracting. Both men now face possible prison time, with sentencing dates to be set later. Their guilty pleas helped clear the way for the expanded charges now facing Marquez, the Maryland IT executive.
Federal officials described the case as a serious breach of trust. They stressed that government contracts, especially those linked to defense and security, rely on fairness and open competition. When insiders misuse their access, officials say it not only wastes public money but also damages confidence in how the government does business. Investigators from several agencies worked together on the case, including the FBI, the Department of Defense’s investigative arm, and the inspector general’s office for the National Security Agency.
If found guilty, Marquez could face decades in prison. Each wire fraud count carries a potential sentence of up to 20 years, along with additional time for conspiracy and major fraud charges. Any sentence would be decided by a federal judge, who would weigh legal guidelines and other factors before making a final ruling.
The case is part of a wider effort by the Justice Department to crack down on fraud tied to public spending. In recent years, federal officials have increased focus on bid rigging, price fixing, and secret deals that drive up costs for taxpayers. A special task force was formed to bring together prosecutors and investigators from across the country to spot and stop these practices.
Officials also encouraged anyone with knowledge of similar conduct to come forward. Federal programs exist to protect whistleblowers and, in some cases, reward those whose information leads to major recoveries. As the Maryland case moves toward trial, it serves as a reminder that government contracting fraud can carry heavy legal consequences and that authorities are watching closely for signs of abuse.
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Tech business owner in Maryland indicted for conspiracy to defraud federal government
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