On June 20, 2000, DD Industries submitted its bid, including a sworn statement attesting that: SMS would share profit and loss in proportion with SMS' 70 percent ownership and 30 percent for Faustech; there were no other ownership interests or agreements that restricted ownership or control; and there were no other agreements other than the joint venture agreement between the partners. The Cook County Board found DD Industries to be the lowest qualified bidder and formally awarded the contract on August 9, 2000.

On October 24, 2000, GE Medical Systems filed a civil lawsuit against Cook County in federal court in Chicago seeking to block the radiology contract based on claims it was fraudulently obtained by DD Industries. An evidentiary hearing was held before U.S. Magistrate Judge Geraldine Soat Brown in January 2001. GE Co. v. County of Cook, 00 C 6587 (N.D. Il.) Ultimately, the parties settled the lawsuit and almost all of the Stroger Hospital radiology contract was transferred to GE.


According to the indictment, on May 25, 2000, Villazan and SMS Manager A working in Hoffman Estates negotiated a flat fee compensation agreement calling for SMS to pay Villazan $450,000 on a payment schedule and a $50,000 bonus if certain conditions were met. That same day, the secretary of SMS Manager A sent an e-mail to Roth and upper-level management at SMS reciting the agreed payment schedule:
- $50,000 if the purchase order was issued to SMS by August 2000;
- $100,000 upon issuance of the purchase order;
- $200,000 when SMS received a payment of the delivery portion from the County;
- $150,000 when the County made its final payment; and
- $450,000 guaranteed total from the deal.
The indictment alleges that Roth received the e-mail and SMS' Manager A discussed the agreement with Desmond.

The fraud scheme also alleges that an SMS official told Villazan that while SMS expected Villazan to perform some work, SMS and Villazan intended that Faustech's role was solely to create the appearance that SMS had a true joint venture MBE partner and to liaison with Cook County and not to perform a commercially useful function on the contract.

On May 26, 2000, top-level SMS management personnel approved SMS' flat fee agreement with Villazan, knowing that it was a commission payment for his anticipated work in obtaining the contract and acting as liaison with county personnel, if necessary. During the next month, Roth drafted and/or reviewed paperwork and portions of the bid documents - including the joint venture affidavit signed by various principals including Villazan, Desmond and SMS Officer A - which were reviewed by Desmond and others before Desmond, Villazan, and other SMS executives signed and submitted them to Cook County. Roth determined which aspects of the SMS-Faustech relationship would be disclosed to or hidden from Cook County, the indictment alleges.

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