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You are here News Military Sex, booze, Bali: Omaha corps manager at center of probe

Sex, booze, Bali: Omaha corps manager at center of probe

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Army Corps of EngineersSex, booze, and a taxpayer-funded vacation to Bali and Singapore — all are part of salacious allegations of bid-rigging and fraud involving the Omaha district of the Army Corps of Engineers.

No criminal charges have been filed so far in the federal investigation that centers on Jerry Hodgson, a program manager in the Omaha district, and his dealings with Oregon company Sky Research Inc. The company specializes in aerial surveys of old military properties to find weapons debris.

The investigation focused on potential charges of bribery of a public official, conspiracy to defraud the United States, wire fraud, padding of bids and bid-rigging, affidavits said.

Former Sky Research senior accountant Kimberly Walker told investigators that she recalled that one project in Puerto Rico had a profit margin of 400 percent. She said excess profits from one project routinely were used to cover cost overruns on another, a practice employees called “Jerrying.”

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