Three California residents accused of defrauding the California Department of Transportation

SACRAMENTO, CALIFORNIA (BNO NEWS) – Three individuals on Thursday were charged with bribery, bid rigging, and fraud in connection with contracts issued by the California Department of Transportation (Caltrans), causing a loss of over $1.2 million.

Clint Gregory, 48, of Sacramento, California, Siavash “Mike” Poursartip, 56, and Sara Shirazi, 52, both of Walnut Creek, California, were charged in connection with the fraud. Gregory was a senior transportation engineer supervisor for Caltrans District 10 in Stockton. Poursatip and Shirazi operated Infotek Associates, a California Corporation. Poursatip and Shirazi offered bribes, of which Gregory accepted, of money, a Persian rug, a cellular phone, and other gifts in exchange for being awarded “Minor B” contracts by Caltrans. “Minor B” contracts are those used by Caltrans for projects that are valued less than $131,000.

Gregory deposited the bribe payments into bank accounts held in the name of business entities he controlled while circumventing the competitive bidding process that requires bids from at least two certified vendors before a Minor B contract is awarded. The defendants and others arranged for third party companies to submit straw bids for Minor B contracts on which Poursatip and Shirazi were bidding.

If convicted of the charges, the defendants all face up to 20 years in prison for the mail fraud offense, up to 10 years in prison for the theft and bribery offenses, and up to five years in prison for the conspiracy charge. Additionally, there will be fines up to twice the value of the victim’s losses.

The case is the result of an investigation by President Obama’s Financial Fraud Enforcement Task Force which includes a broad range of federal agencies and state and local partners.

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