Response to Camille Chidiac’s Suspension

On May 30, the U.S. government suspended Camille Chidiac, a minority owner of Leonie Industries. The government placed Mr. Chidiac on the “Excluded Parties List” (“EPL”) of individuals and corporations suspended or debarred from U.S. government contracting. This action followed Mr. Chidiac’s May 24 disclosure of involvement in an online “misinformation” campaign, which in turn prompted his announcement that he would sell his shares in Leonie.

Mr. Chidiac’s placement on the EPL relates to him as an individual. Leonie has not been placed on the EPL, and the government has not indicated that Leonie has done anything that would warrant placement on the list.

The Federal Acquisition Regulation ("FAR"), which governs federal contractors, states that an individual’s suspension from contracting does not affect the corporation unless the individual’s conduct is in conjunction with their performance of duties for or on behalf of the contractor, or with the contractor's knowledge and approval. Neither of these conditions is present here.

Since resigning as an officer and employee of Leonie in 2008, Mr. Chidiac has not been involved in any way with the operation, management or performance by Leonie under its contracts with the federal government. Leonie was not aware of and did not authorize Mr. Chidiac’s online activity.

Mr. Chidiac has made it clear he acted as an individual and independent of the company. And, as he said on May 24, he is “in the process of completely divesting my remaining minority ownership from Leonie." The divestment process is not yet completed.

Leonie continues to operate as a responsible government contractor.

Leonie has successfully competed for and won multiple contracts based on the company’s performance record and the high quality of the teams we deliver. Our record of success is evident based on the consistently positive performance reviews and employee commendations the company has received, as well as the individual civilian service awards made to Leonie employees for their work.

It is also worth noting that since Leonie began government contracting in 2004, the government has conducted routine audits of the company on several occasions and has found Leonie’s systems and operations to comply with all government’s requirements.

Leonie’s employees and partners continue to work hard to meet and exceed the requirements and expectations of our customers and we remain honored to support the national security mission of the U.S. government.