Businessman charged with bribing state workers to land $2.5M contract

Business owner charged with bribing state employee to get multi-million dollar contract

HONOLULU (HawaiiNewsNow) - A Hawaii businessman has been charged with bribing state employees and officials in the Federated States of Micronesia in order to receive multi-million dollar government contracts.

Frank James Lyon, of LYON Associates Inc. in Honolulu, allegedly bribed the Hawaii government workers with at least $240,000 in order to land a $2.5 million contract, according to a federal court filing.

Court documents say one of the employees — identified as co-conspirator 3 — was with a state agency from 2009 to 2012. The filing says the state worker arranged payments to others, including one on a contract selection panel.

Lyon, president of the civil engineering firm, is also accused of bribing Micronesian officials with at least $200,000 in order to get $7.8 million in contract payments.

He could not immediately be reached.

Federal officials did not say which department the co-conspirator 3 worked for. Hawaii News Now has reached out to the state for more information.

But the filings do say that about $132,000 was paid to a state employee “purportedly for marketing services."

“However, the purpose of the payments was for co-conspirator 3′s participation in influencing the award of a state agency contract in favor of engineering company,” the filing said.

LYON identifies itself as a “family-owned, multi-discipline consultancy," with work that includes infrastructure-improvement projects, roads and highways, utilities, institutional facilities and housing developments.

Its website spotlights a host of large Hawaii projects, along with projects across Asia and the Pacific.

Lyons Bribery Charges by on Scribd

This story will be updated.

Copyright 2019 Hawaii News Now. All rights reserved.