Former Employee of the Department of Energy’s Strategic Petroleum Reserve Convicted for Role in Scheme to Defraud the United States

A federal jury convicted a Louisiana man today for his role in a scheme to defraud the United States.

According to documents and evidence presented at trial, Johnny C. Guillory Sr., 72, of Opelousas, Louisiana, conspired with Cajan Welding & Rentals, Ltd. to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve. From 2002 until 2016, Cajan was awarded over 50 subcontracts and received payments in excess of $15 million from the Department of Energy, during which time Guillory received financial benefits from Cajan.

“The Strategic Petroleum Reserve is one of our nation’s vital programs, and collusion that destroys the integrity of the procurement process for government contracts will not be tolerated,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s guilty verdict demonstrates that people who corrupt that process, defraud the United States, and lie about it will be held accountable. The Antitrust Division will continue to vigorously prosecute offenses that undermine competition and work with our law enforcement partners to protect taxpayer dollars.” 

“This guilty verdict sends a clear message that our office, along with our federal partners will vigorously investigate and prosecute all violations of our nation’s laws,” said U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.

Guillory was convicted of conspiracy to defraud the United States and to violate the Procurement Integrity Act as well as making false statements to federal agents. Guillory is scheduled to be sentenced on Sept. 8, and faces a maximum term of five years imprisonment, a fine of up to $250,000, up to a three-year term of supervised release, and a mandatory special assessment of $200.00, as to each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Department of Energy’s Office of the Inspector General investigated the case.

Trial Attorneys Megan S. Lewis and Julia Maloney of the Antitrust Division’s Washington Criminal II Section and Assistant U.S. Attorney Tracey N. Knight of the U.S. Attorney’s Office in the Eastern District of Louisiana are prosecuting the case.

Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at (202) 598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.