Guilty plea in $20M government contracting fraud scheme WASHINGTON - A former executive is admitting his role in a $20 million government contracting fraud scheme. Harold F. Babb pleaded guilty in Washington's federal court on Tuesday to charges of bribery and unlawful kickbacks. Prosecutors say Babb is cooperating with their investigation. Babb and three other men were arrested in October and charged with a scheme to submit fraudulent and inflated invoices for government contracting work. Two of the men were employees of the Army Corps of Engineers, and Babb was the director of contracts for a company that did business with the government Prosecutors say the proceeds of the $20 million fraud were spent on personal luxuries, including cars, homes and high-end watches.