Former official, IT exec plead guilty to bribery, extortion • The Register

A previous Maryland Cupboard-amount official and a former IT govt have pleaded responsible to involvement in a bribery and extortion plan associated to technology contracts about a 10 years in the past.

In accordance to the US Attorney’s Business of the Point out of Maryland, Isabel FitzGerald, 52, of Annapolis, Maryland, and Kenneth Coffland, 67, of Riva, Maryland, pleaded responsible last 7 days to prices of bribery and extortion, respectively. They were indicted in 2017.

From 2009 by way of September 2011, Coffland worked [PDF] at ACS, which held a $129 million IT internet hosting agreement and $229 million programs contract with the Condition of Maryland Division of Human Methods (DHR). ACS, obtained by Xerox in 2010, managed the datacenter that hosted DHR apps for administering welfare positive aspects beneath federal and point out systems.

Through that time, Coffland developed a working relationship with FitzGerald, then DHR’s CIO and the person accountable for overseeing the hosting and applications contracts. By 2010, the romantic relationship experienced become particular, according to courtroom documents.

FitzGerald involving 2007 and 2014 held a amount of state positions, together with as properly as DHR CIO, executive consultant to the DHR Secretary, DHR Deputy Secretary of Operations, and the Secretary of the Department of Data Engineering in the Cabinet of then-Maryland Governor Martin O’Malley.

FitzGerald resigned from DHR as of Oct 2011 but from December 2011 until about a 12 months later on, she served as a advisor to her successor at DHR.

Coffland resigned from ACS/Xerox in September 2011 just after FitzGerald experienced supplied see that she intended to stage down. Days soon after his resignation, Coffland started off do the job for a next organization that was responsible for examining ACS/Xerox’s deal and for reporting this info to DHR – while FitzGerald was consulting for DHR.

By December 2012, FitzGerald had rejoined DHR – she was appointed Deputy Secretary for Operations of DHR and reported to the DHR Secretary.

In accordance to Coffland’s plea settlement [PDF], FitzGerald in early 2013 encouraged her successor as DHR CIO to explain to ACS/Xerox to get rid of the human being serving as hosting director. She then satisfied ACS/Xerox’s plan manager about ostensibly problematic efficiency with regard to the internet hosting contract.

She indicated she would not renew the firm’s state deal after it expired in 2014 except if it resolved the challenges she cited. But she advised if the organization rehired Coffland as internet hosting director, he would be capable to fix the cited problems and that would lead to the renewal of the point out contract.

ACS/Xerox did not want to do so, in accordance to the plea agreement, mainly because it considered Coffland, for the reason that of his personalized marriage with Fitzgerald, would not reasonably characterize the company’s pursuits when working with the condition. Nevertheless, the small business did offer to rehire him.

Coffland, educated of FitzGerald’s negotiations prior to obtaining the employing give, experienced leverage and countered the firm’s original offer you with a need for much extra income and a place as an unbiased contractor fairly than personnel.

The organization, even with its reservations, agreed to spend Coffland at a rate of $125 for every hour for up to 2,400 hrs every year, a potential income of $300,000, moreover quarterly bonuses of up to $50,000, or $200,000 each year.

Court docket filings also describe how FitzGerald conspired with staff members of an Indiana-based mostly IT agency to threaten the cancellation of a $27.6 million DHR project if the condition unsuccessful to subcontract a portion of the work as a result of the Indiana company. From this, FitzGerald got paid out a portion of the offer by means of a company she formed, Aeon Consulting and Specialized Providers. As element of her responsible plea, FitzGerald ought to spend $38,310 in restitution.

FitzGerald faces up to 10 many years in federal jail for bribery involving an agent acting on behalf of a application acquiring federal cash. Coffland could receive as substantially as 20 a long time for extortion. Sentencing for the two is scheduled for Oct 13, 2022. ®