The United States Department of Justice pressed a civil forfeiture case involving wrongfully acquired assets retained by Hikmatullah Shadman, a government contractor in Afghanistan. The DOJ settled the case with forfeiture of $25 million to the United States as recompense for the unlawful acquisition of United States assets for himself.
Hikmatullah Shadman is an Afghan national operating multiple companies serving as delivery suppliers for U.S. service members located throughout Afghanistan. One was Hikmat Shadman Logistics Services Company (HSLSC). From November 2010 to March 2012, it charged more than $77 million to the United States for delivering supplies as a government contractor in Afghanistan.
The investigation revealed that charges were disproportionate to what was transported. The prices for such transportation services were also inflated. In addition to the civil forfeiture and False Claims Allegations Act Resolutions, HSLSC will also be charged criminally by the U.S. Attorney’s Office in the Eastern District of North Carolina. This company has pleaded guilty on Jan 3rd to two accounts of paying gratuities to U.S. service members in Afghanistan, as well as one act of conspiracy to do the same. The sentence for this criminal case resulted in HSLSC paying an $810,000 fine and a forfeit of $190,000 to the United States. They will be on probation for five years from seeking any business with the United States.