Former Air Force civilian employee sentenced to more than 15 years in prison for fraud


Date: April 25, 2023


A San Antonio man was sentenced in a federal court in San Antonio Monday to 188 months in prison for wire fraud and tax fraud.

According to court documents, Keith Alan Seguin was a civilian government employee authorized by the Air Force to solicit and accept orders for flight simulator technology and support, and to promote and manage related contracts. As part of a scheme that spanned more than 10 years, Seguin conspired with others who paid him more than $2.3 million in cash and bribes for $100 million in work on Air Force projects.

Senior United States District Judge David Ezra sentenced Seguin to 36 months confinement with one year of supervised release for the charge of making a false income tax return, and 188 months confinement followed by three years of supervised release for the charge of conspiracy to commit wire fraud. Those sentences will run concurrently. The judge also ordered Seguin to pay $736,618 in restitution to the IRS and, $38,733,720.65 in restitution to the Air Force, Army and General Services Administration and to forfeit $2,342,095 that he received in bribe money.

"Government employees who collude with dishonest contractors to defraud the integrity of a government contracting system for personal gain will not be tolerated," said U.S. Attorney Jaime Esparza of the Western District of Texas. "It removes legitimate businesses from competition and harms the American taxpayer. It harms our nation's warfighters by inflating the cost to the Government, thereby reducing the materials and training available to our service members. This office will continue to work with our law enforcement partners to bring those offenders to justice."

"Keith Seguin's decade of millions of dollars of bribes and fraudulent contracts is insidious, infecting the trust placed in our government to serve the needs of its citizens. Now, he can dwell on his crimes while sitting in prison," said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation's IRS-CI Houston Field Office. "IRS-CI and our law enforcement partners are here to help restore the trust that was lost and protect the interests of this nation and its people."

"The GSA OIG is committed to holding accountable those who abuse their government positions of trust for personal gain," said the Honorable Carol Fortine Ochoa, Inspector General for the U.S. General Services Administration. "The outcome in this complex procurement fraud case is due to the dedicated efforts of GSA OIG special agents and our law enforcement partners."

"These results are a testament to the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), together with our investigative partners to protect the integrity of the DoD contracting process," said The Honorable Robert P. Storch, Inspector General, Department of Defense Office of Inspector General. "DCIS stands vigilant to combat corruption within the DoD and will tirelessly pursue those who seek to fraudulently enrich themselves at the American taxpayer's expense."

"Today's sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government," said Special Agent in Charge Larry S. Moreland, of the Department of the Army Criminal Investigation Division's, Major Procurement Fraud Field Office.

"The sentences reflect the results of the skilled and hard work put forth by all agencies involved," said Special Agent in Charge Blair Holmstrand, Air Force Office of Special Investigations, Procurement Fraud Detachment 3, San Antonio, Texas.

IRS-CI, the GSA OIG, DCIS, AFOSI, and Army CID investigated the case.

Assistant U.S. Attorneys William Lewis, Kelly Stephenson and Special Assistant U.S. Attorney Jay Porier prosecuted the case.