Army Colonel Charged with Producing Own Child Pornography

EDGAR PAGAN-TORRES, 41, of Peachtree City, Georgia, a lieutenant colonel with the U.S. Army, has been indicted by a federal grand jury on child pornography production and possession offenses. PAGAN made his initial appearance before a United States Magistrate Judge on April 15, 2009 and was indicted this afternoon.

United States Attorney Sally Quillian Yates said, “This defendant allegedly sexually abused his own daughter and niece and then produced videos of his crimes, ‘mementos’ that he carefully organized into home video-style DVDs. This shocking and tragic conduct has no place in our nation’s military, nor anywhere else. I appreciate all the hard work the U.S. Army investigators did to bring this case to the FBI and to ensure that the Defendant now faces these very serious charges.”

“Today's indictment and continuing investigation clearly illustrates tremendous interagency cooperation with our global law enforcement partners,” said Brigadier General Colleen McGuire, the Provost Marshal General of the Army and the Commanding General of the U.S. Army Criminal Investigation Command. “Working hand in hand with Federal, State and local law enforcement agencies in cross jurisdictional investigations, we are continually proving our commitment to investigate crimes impacting the Army, wherever they may occur.”

According to United States Attorney Yates, the indictment and evidence in public record and in court: PAGAN was assigned to a military installation in Puerto Rico from 2004 to 2007. At that time, he and his family lived near PAGAN’s sister, who has a daughter the same age as PAGAN’s daughter. In 2008, a year after PAGAN and his family relocated to Peachtree City, PAGAN’s niece made an outcry alleging that PAGAN had molested her and his daughter. In 2009, family members passed this information to law enforcement in Puerto Rico, resulting in PAGAN’s guilty plea last month in Puerto Rico to criminal charges related to his niece’s molestation allegations.

At the same time the Puerto Rican authorities were investigating, agents from the U.S. Army’s Criminal Investigations Division based at Ft. McPherson seized various computers and digital media from PAGAN’s home in Peachtree City. Searches of these items revealed sexually explicit videos PAGAN had made involving his daughter and his niece. Some of the videos were made in PAGAN’s home in Puerto Rico and others were made in his Peachtree City residence. Many of the videos had been transferred from the original recording media to home video-style DVDs organized into chapters. Additional forensic work uncovered a large collection of child pornography PAGAN had downloaded from the internet.

Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt.

This case is being investigated by Special Agents of the FBI, U.S. Army Criminal Investigations Division, and the Peachtree City Police Department.

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Former U.S. Military Contractor Pleads Guilty to Bribery and Money Laundering Scheme Related to Defense Department Contracts in Support of Iraqi War

Former military contractor Terry Hall, 43, of Snellville, Ga., pleaded guilty today to conspiracy to pay more than $3 million in bribes to U.S. Army contracting officials stationed at Camp Arifjan, an Army base in Kuwait, and to money laundering conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.

Terry Hall was indicted on May 6, 2009, along with U.S. Army Major Eddie Pressley, 39, and his wife, Eurica Pressley, 37, both of Harvest, Ala.According to court documents filed in U.S. District Court for the Northern District of Alabama, Hall’s companies received approximately $21 million between 2005 and 2007 in connection with contracts his companies received.To obtain the contracting business and facilitate unlawful payments by other contractors, Hall admitted he made more than $3 million in unlawful payments and provided other valuable items and services to U.S. Army contracting officials stationed at Camp Arifjan, including U.S. Army Major Eddie Pressley, and former Majors John Cockerham, James Momon and Christopher Murray, among others.

According to court documents, Hall owned and operated several companies, including Freedom Consulting and Catering Co., (FCC) and Total Government Allegiance (TGA), which provided goods and services to the U.S. Department of Defense (DoD) in connection with Operation Iraqi Freedom.Hall’s companies received a Blanket Purchase Agreement (BPA) to deliver bottled water in Iraq and a contract to construct a security fence in Kuwait.

A BPA is an indefinite delivery, indefinite quantity contract by which the DoD agrees to pay a contractor a specified price for a particular good or service. ased on a BPA, the DoD is permitted to order the supplies on an as-needed basis, and the contractor is bound by the price agreed upon in the BPA.The term for this type of order by the DoD is a “call.”

The case against Hall arose out of a wide-ranging investigation of corruption at the Camp Arifjan contracting office.To date, eight individuals including Hall have pleaded guilty for their roles in the bribery scheme.

On Dec. 2, 2009, former Cockerham was sentenced to 210 months in prison and ordered to pay $9.6 million in restitution. According to court documents, Cockerham arranged for Hall’s companies to receive bottled water calls worth more than $2.6 million, as a result of which Hall paid Cockerham approximately $800,000.

According to court documents, Momon arranged for Hall’s companies to receive bottled water calls worth approximately $6.4 million, as a result of which Hall paid Momon more than $300,000.Momon pleaded guilty on Aug. 13, 2008, to receiving bribes from various contractors at Camp Arifjan, including Hall, and is awaiting sentencing.

Also according to court documents, Murray arranged for Hall to receive contracts to construct security fences at Camp Arifjan, as a result of which Hall paid Murray approximately $30,000.Murray pleaded guilty to receiving bribes from various contractors at Camp Arifjan, including Hall, and making a false statement.He was sentenced on Jan. 8, 2009, to 57 months in prison and ordered to pay $245,000 in restitution.

The case against Eddie Pressley and his wife, Eurica Pressley, is scheduled for trial on April 5, 2010.The indictment alleges that the Pressleys received more than $2.8 million in money and other valuable items from Hall, in exchange for Eddie Pressley’s agreement to take official actions to benefit Hall.Eurica Pressley, at her husband’s request, allegedly arranged for an entity named EGP Business Solutions Inc., (EGP) to be incorporated, opened a bank account in the name of EGP, and opened bank accounts in her name in the United States, Dubai, United Arab Emirates and the Cayman Islands, all in order to receive the bribe payments.

The charge of bribery conspiracy carries a maximum prison sentence of five years and a $250,000 fine.The money laundering conspiracy carries a maximum prison sentence of 20 years and a $250,000 fine.According to the court documents, Hall will forfeit $15,757,000 to the U.S. government.

The case is being prosecuted by Trial Attorneys Peter C. Sprung and Edward J. Loya Jr. of the Criminal Division’s Public Integrity Section.The case is being investigated by special agents of the Special Inspector General for Iraq Reconstruction, the Army Criminal Investigation Command, Defense Criminal Investigative Service, the U.S. Immigration and Customs Enforcement, the Internal Revenue Service, and the FBI.

The National Procurement Fraud Task Force, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention, and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs.

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Retired Army Major Sentenced to 57 Months in Prison for Role in Bribery Scheme Involving DOD Contracts in Kuwait

A retired major in the U.S. Army today was sentenced to 57 months in prison for his role in a bribery scheme related to Department of Defense (DOD) contracts awarded in Kuwait, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer and Assistant Attorney General of the Antitrust Division Christine Varney.

Christopher H. Murray, 42, a resident of Cataula, Ga., was also ordered by Judge Clay D. Land of the U.S. District Court for the Middle District of Georgia - Columbus Division to pay $245,000 in restitution and to serve three years of supervised release following the prison term.

Murray pleaded guilty in January 2009 to a five-count criminal information charging him with four counts of bribery and one count of making a false statement. According to the court documents, in 2005 and 2006, then-Major Murray served as a contracting specialist in the small purchases branch of the contracting office at Camp Arifjan, Kuwait. As a contracting specialist, Murray was responsible for soliciting bids for military contracts, evaluating the sufficiency of those bids, and then recommending the award of contracts to particular contractors. In this capacity, Murray solicited and received approximately $225,000 in bribes from DOD contractors in exchange for recommending the award of contracts for various goods and services.

According to court documents, Murray returned to Kuwait in fall 2006, as a contracting officer, and solicited and received another $20,000 in bribes from a DOD contractor in exchange for the award of a construction contract. When confronted with evidence of his criminal conduct, Murray made false statements to federal agents investigating the matter.

This case is being prosecuted by trial attorney Richard B. Evans of the Criminal Division’s Public Integrity Section as well as trial attorneys Mark W. Pletcher, Emily W. Allen and Finnuala Kelleher of the Antitrust Division’s National Criminal Enforcement Section.

The case is being investigated by the Special Inspector General for Iraq Reconstruction; the Army Criminal Investigation Command, Defense Criminal Investigative Service; U.S. Immigration and Customs Enforcement; the FBI; and the Internal Revenue Service.

The National Procurement Fraud Task Force, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs.

Anyone with information concerning bid rigging, bribery or other criminal conduct regarding DOD contracts is urged to call the Defense Criminal Investigative Service at 800-424-9098 or hotline@dodig.mil; Army Criminal Investigation Division at www.cid.army.mil; or the FBI at 800-225-5324.

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