Former Eyak Tech executive pleads to bribery and unlawful kickback charges

By Tony Gorman

A former Eyak Corporation exec has admitted his role in what federal prosecutors say is one of the largest and most brazen government procurement frauds in history.  Harold Babb pleaded guilty, yesterday (Tuesday), in federal court in Washington, D-C, to bribery and unlawful kickbacks charges involving government contracts.

Authorities say Babb, who was the director of contracts for Eyak Technology at the time, admitted to accepting more than one million dollars in kickbacks from Nova Datacom technology chief Alex Cho in exchange for preferential treatment.  He also paid 7 million dollars in bribes in return for approval on Army Corps of Engineers contracts and subcontracts.  Babb, two Corps of Engineers employees, and another man were arrested in October.

Prosecutors say the scheme was initially totaled at 20 million dollars.  That has since been raised to 28 million dollars after the discovery of new bribes and payments.  KCHU’s calls to the Eyak Corporation seeking comment were not returned. 

Babb is not expected to face the maximum sentences for bribery and unlawful kickback conviction because of his guilty plea.


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