VAOIG Seal U.S. Department Of Veterans Affairs
Office of Inspector General
South Central Field Office
4040 N. Central Expwy, Suite 500
Dallas, TX 75204-3158
(214) 253-3360
Thursday, December 01, 2005
Contractor Sentenced in Kickback Scheme
John McDermott, Special Agent in Charge, Department of Veterans Affairs (VA), Office of Inspector General (OIG), announced today that in United States District Court, in the Eastern District of Louisiana, located in New Orleans, LA, William Kirkikis, a contractor employed by the Department of Veterans Affairs Medical Center in New Orleans, LA (VAMC), was sentenced to five years probation and ordered to make restitution in the amount of $66,410 to the VAMC.

McDermott stated that the Sentencing of Kirkikis resulted from an investigation by his New Orleans, LA, Resident Office. Kirkikis, a contractor involved in plumbing and electrical systems repairs at the VAMC, engaged in a scheme with former VAMC Plumbing Supervisor employee, Danny Moore, to inflate and falsify purchase orders for both emergency and routine plumbing repairs at the VA facility. For approximately a three (3) year period, Kirkikis and another contractor conspired with Moore to overcharge the VAMC more than $80,000. Moore is believed to have received at least this amount in kickbacks from Kirkikis and the other contractor in order to obtain contracts to work at the VAMC.

Assistant United States Attorney Tony Sanders, New Orleans, LA, is prosecuting the case.