Legal Issues

All Defendants Sentenced In Air Force Contract Corruption Scandal

All Defendants Sentenced In Air Force Contract Corruption Scandal

Following the sentencing of the remaining four defendants, everyone involved in the Keith Seguin Air Force corruption scandal now knows the consequences of their respective actions.

Seguin, 57, was a civilian employee of the United States Air Force. Per the Department of Justice, he was authorized to both seek out and accept orders for flight simulator technology and support. Seguin also had the authority to promote and manage contracts related to Randolph Trainer Development (RTD) flight simulators. Over the course of more than a decade, Seguin abused the trust the USAF placed in him, conspiring with multiple co-conspirators who paid over $2.3 million worth of cash and bribes for $100 million in Air Force contracts.

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Credit: Jared C. Tilton/Getty Images

Seguin himself was sentenced to over 15 years in federal prison on April 24, 2023. Senior United States District Judge David Ezra also ordered Seguin to four total years of supervised release.

Now, the remaining four defendants in the Air Force contract conspiracy have been handed their sentences. 

An official release from the IRS shared details.

David Joseph Bolduc Jr., of Herndon, Virginia will serve 120 months in prison for one count of conspiracy to commit wire fraud. The former owner of software company QuantaDyn was also ordered to pay $37,757,713.93 in restitution and to forfeit assets valued at $8,750,775.77.

John G. Hancock, of Fairborn, Ohio, will serve 40 months in federal prison for one count of conspiracy to commit wire fraud. He was ordered to pay $23,769,884.41 in restitution.

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Credit: Brett Carlsen/Getty Images

Hancock worked closely with Karen K. Paulsen to engage, along with Sequin, in corrupt contracting practices intended to defraud the Air Force, the Genearl Services Administration (GSA), and various government contractors. 

For her role in the scandal, Paulsen, of Beaver Creek, Ohio, was charge with one count of conspiracy. She will serve five years of probation with six months of home confinement. Paulsen must also perform 100 hours of community service during each year of her probation, and pay $8,015,860.00 in restitution.

Finally, Rubens Wilson Fiuza Lima, of Marietta, Georgia, faces 27 months in prison. He was also ordered to pay $653,984.20 in restitution. Lima, Seguin's friend, accepted a job as a government subcontractor, then used his business, Impex Import Export Inc., to help Seguin disguise his bribe money as being used for legitimate flight simulator purchases.

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Credit: Jerod Harris/Getty Images

IRS Criminal Investigation’s Houston Field Office Special Agent in Charge Ramsey E. Covington said of the setnencings, “The successful prosecution and sentencing of additional defendants demonstrate our unrelenting pursuit of justice in the face of complex criminal networks. Each co-conspirator played an active role in facilitating this fraudulent scheme and inflicted significant harm on the integrity of our institutions."

“Our team remains committed to working together to dismantle such schemes and safeguard the interests of our nation," Covington concluded.

What do you think about this military contract scam?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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