News

ALEXANDRIA, Va. – A Virginia-based consulting group and its president and majority owner agreed to a $4.8 million settlement with respect to allegations that they paid kickbacks, announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.

SAN ANTONIO – Keith Alan Seguin, a 55-year-old former civilian employee at Randolph Air Force Base in San Antonio, admitted this morning to receiving millions of dollars in bribes in connection with a government contract fraud scheme that spanned more than a decade and impacted hundreds of millions of dollars in contract awards.

BOSTON – A Newton man pleaded guilty today in connection with defrauding the General Services Administration.

CAMDEN, N.J. – The president of a company providing goods to government agencies today admitted to attempting to defraud businesses in connection with government contracting, Acting U.S. Attorney Rachael A. Honig announced.

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 4, 2021, Joshua Keller, age 30, of Pottsville, Pennsylvania, was sentenced to one year and one day imprisonment followed by a two-year term of supervised release by U.S. District Court Judge Robert D. Mariani, for destruction of government property and lying during the purchase of a firearm. Judge Mariani also ordered Keller to pay $39,393 in restitution.

BOSTON – A Newton man was charged yesterday in connection with defrauding the General Services Administration.

PROVIDENCE – A Brooklyn, NY, businessman who admitted to arranging the manufacture of counterfeit clothing, apparel, and gear, in China and Pakistan, that was shipped to wholesalers for distribution in the United States, including to the United States military, has been sentenced to 18 months in federal prison and ordered to pay a $15,000 fine.

A Missouri man pleaded guilty today to rigging online bids submitted to the General Services Administration (GSA).

Today, a federal grand jury in San Antonio, Texas, returned an indictment charging the former owner of several companies in the construction industry for his role in a long-running scheme to defraud the United States.

WASHINGTON – Two Texas construction company owners have pleaded guilty in a long-running scheme to defraud the United States.

PHILADELPHIA – Deputy United States Attorney Louis D. Lappen announced that SAP Public Services, Inc. has agreed to pay the United States more than $2.2 Million to resolve allegations that it violated the False Claims Act by failing to pay required fees on contracts it signed pursuant to agreements with the United States General Services Administration (GSA).

KANSAS CITY, KAN. – A Kansas man pleaded guilty today to lying to a federal investigator who was looking into allegations of major program fraud, U.S. Attorney Stephen McAllister said.

Greenbelt, Maryland – Arthur Morgan, age 67, of Lorton, Virginia, pleaded guilty today to a federal wire fraud charge, in connection with federal contracts to provide helmets, body armor, and other items to military and other federal entities. Morgan also pleaded guilty to illegal possession of a firearm by a prohibited person, a charge which was originally brought in U.S. District Court for the Eastern District of Virginia, but was transferred to Maryland.

BURLINGTON – Schneider Electric Buildings Americas, Inc. (Schneider Electric), a nationwide provider of electricity solutions for buildings and data centers with its principal place of business in Carrollton, Texas, will pay $11 million to resolve criminal and civil investigations relating to kickbacks and overcharges on eight federally-funded energy savings performance contracts (ESPCs), the Department of Justice announced today. Under the contracts, Schneider Electric was to install a variety of energy saving upgrades such as solar panels, LED lighting, and insulation in federal buildings.

An employee of a government contractor pleaded guilty today to his involvement in a scheme to overbill a contract administered by the General Services Administration (GSA) by approximately $1.25 million, and solicit and receive kickbacks from a subcontractor in exchange for providing that subcontractor valuable contract modifications.

Cognosante LLC has agreed to pay the United States $18,987,789 to resolve allegations that it violated the False Claims Act by using unqualified labor and overcharging the United States for services provided to government agencies under two General Services Administration (GSA) contracts, the Justice Department announced today. Cognosante, which is headquartered in Falls Church, Virginia, provides health care and IT services and solutions to federal agencies.

Orlando, Florida – Edwin Torres Arenas (49, Oviedo) has pleaded guilty to seven counts of stealing government funds. He faces a maximum penalty of 10 years in federal prison on each count. A sentencing date has not yet been set.

MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, has returned the following indictments. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

WASHINGTON – Ronnie Simpkins, 68, of Lusby, Maryland, a former government contract officer with the General Services Administration (GSA), was sentenced to a 21-month prison term on a federal bribery charge stemming from a scheme in which he accepted bribes from government contractors from August 2011 to August 2017. Simpkins pled guilty to the charge on December 19, 2019.

Industries for the Blind and Visually Impaired Inc. (IBI) has agreed to pay the United States $1,938,684.09 to resolve allegations that IBI violated the False Claims Act and the Anti-Kickback Act in connection with certain federal contracts set aside to employ blind workers, the Justice Department announced today.

NEWARK, N.J. – A Nigerian national was sentenced today to 36 months in prison for his role in a computer hacking and identity theft scheme that defrauded vendors of nearly $1 million of office products after “phishing” e-mail login information from government employees, U.S. Attorney Craig Carpenito announced.

The Department of Justice announced today that QuantaDyn Corporation (QuantaDyn), headquartered in Ashburn, Virginia, has agreed to resolve civil claims arising from allegations that it engaged in a bribery scheme to steer government contracts for training simulators to the company, as part of a broader settlement that includes a guilty plea by the company. As part of the plea agreement, QuantaDyn has agreed to pay $37,757,713.91 in restitution, which also will resolve the company’s civil False Claims Act liability for the scheme. William T. Dunn Jr., the majority owner, President, and Chief Executive Officer of QuantaDyn, has separately paid $500,000 to resolve his personal False Claims Act liability.

In San Antonio today, an Ashburn, VA-based software engineering company called QuantaDyn Corporation (QuantaDyn) entered a guilty plea to a federal charge in connection with a bribery and government contract fraud scheme that spanned more than a decade and impacted contract awards worth hundreds of millions of dollars. In addition, the corporation has agreed to pay a $6.3 million fine and more than $37 million in restitution.

United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of 2 counts of Wire Fraud and 1 count of Theft of Government Property was sentenced by Judge Jeffrey L. Viken, U.S. District Court.

PROVIDENCE – A Brooklyn, NY, businessman appeared before a U.S. District Court judge in Providence, R.I., on Tuesday and admitted that he brokered the manufacturing of counterfeit clothing, apparel and gear manufactured in China and Pakistan that was shipped to wholesalers in the United States for distribution. Some of the counterfeit items were distributed to members of the United States military.

Greenbelt, Maryland – A federal grand jury in Maryland has returned an indictment charging Arthur Morgan, age 67, of Lorton, Virginia, with federal wire fraud charges, in connection with federal contracts to provide helmets, body armor, and other items to military and other federal entities. The indictment was returned on July 6, 2020.

Tulsa, Oklahoma-based contractor the Ross Group Construction Corporation (Ross Group), and its corporate affiliates, have agreed to pay over $2.8 million to settle allegations that they violated the False Claims Act by improperly obtaining federal set-aside contracts reserved for disadvantaged small businesses, the Justice Department announced today.

BOSTON – Three men were sentenced today in federal court in Boston for conspiracy to defraud the United States and mail fraud in connection with a scheme to obtain government contracts.

BOSTON – An Uxbridge man and Maryland woman were charged with conspiring to defraud the government of thousands of dollars from 2014 to 2018.

CAMDEN, N.J. – The president of a company providing goods to government agencies was charged today by a federal grand jury with allegedly attempting to defraud businesses in connection with government contracting, U.S. Attorney Craig Carpenito announced.

Alutiiq International Solutions LLC (AIS), a subsidiary of Afognak Native Corporation (Afognak) and an Alaskan Native Corporation, within the meaning of the Alaska Native Claims Settlement Act, that performs construction work on government contracts, has entered into a non-prosecution agreement (NPA) and has agreed to pay over $1.25 million to resolve the Justice Department’s investigation into a kickback and fraud scheme perpetrated by a former AIS manager on a U.S. Government contract administered by the General Services Administration (GSA), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

ALBANY, NEW YORK – Daren Arakelian, age 52, of Rensselaer, New York, pled guilty today to wire fraud for a scheme to import Chinese goods into the United States and then causing his company, Great 4 Image, Inc., to deceptively market and sell those goods to federal agencies as U.S.-made. Arakelian has also agreed to pay $702,000, plus interest, to the United States to resolve his civil liability for his submission of false claims for payment to the federal government.

A federal grand jury returned an indictment charging Alan Gaines, a Missouri resident, with participating in a conspiracy to rig bids submitted to the General Services Administration (GSA) at online auctions for surplus government equipment, the Department of Justice announced.

Mark F. Spindler, a certified public accountant, was found guilty of conspiring with Brian L. Ganos in a scheme to use front companies to obtain set-aside contracts intended for small businesses led by service-disabled veterans and disadvantaged individuals.

In San Antonio today, a federal judge unsealed a grand jury indictment charging a software engineering company called Quantadyn Corporation (Quantadyn); one of its owners, 59-year-old Herndon, VA, resident David Joseph Bolduc, Jr.; 53-year-old San Antonio resident Keith Alan Seguin, and 70-year-old Atlanta, GA, area resident Rubens Wilson Fiuza Lima for their roles in a bribery and government contract fraud scheme that spanned more than a decade and impacted contract awards worth hundreds of millions of dollars.

BOSTON – Three men were charged today in federal court in Boston with conspiracy to defraud the United States and mail fraud in connection with a scheme to obtain government contracts.

CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a conspiracy to defraud the U.S. Department of Defense (DoD), U.S. Attorney Craig Carpenito announced.

WASHINGTON – Ronnie Simpkins, 67, a former government contract officer with the General Services Administration (GSA), pled guilty today to a federal bribery charge stemming from a scheme in which he accepted bribes from government contractors from August 2011 to August 2017.

Greenbelt, Maryland – A federal criminal complaint has been filed in Maryland charging Arthur Morgan, age 67, of Lorton, Virginia, on a federal wire fraud charge, in connection with federal contracts to provide helmets, body armor, and other goods to military and other federal entities. The criminal complaint was filed on December 16, 2019 and was unsealed at his initial appearance following his arrest on December 17, 2019.

United States Attorney Matthew D. Krueger announced that on December 16, 2019, Brian L. Ganos of Muskego, Wisconsin, was sentenced by the Honorable Pamela Pepper to 78 months in federal prison for leading a 12-year fraud scheme involving over $260 million in government-funded contracts intended to benefit small businesses.

A criminal complaint was unsealed today in federal court in Brooklyn charging surveillance and security equipment company Aventura Technologies, Inc. (Aventura), located in Commack, New York, and seven current and former employees with selling Chinese-made equipment with known cybersecurity vulnerability to government and private customers while falsely representing that the equipment was made in the United States and concealing that the products were manufactured in the People’s Republic of China (PRC). Aventura has generated more than $88 million in sales revenue since November 2010, and the charged scheme has been ongoing since 2006.

Remarks as Prepared for Delivery - Good afternoon. Today I am pleased to announce the establishment of the Procurement Collusion Strike Force, a joint law enforcement effort that will combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding.

St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Reinaldo Cruz Taura, president of Puerto Rico-based RCT Mechanical Engineering, pleaded guilty to providing kickbacks in connection with federal government subcontracts to perform work on the federal building and courthouse in St. Croix, VI and on coast guard facilities in Puerto Rico. Taura will be sentenced at a later date.

St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that David Wikel, president of Florida-based Therma-Seal Roof Systems, LLC, pleaded guilty to providing kickbacks in connection with the $1.7 million dollar federal government subcontract to retrofit the roof of the Ron de Lugo Federal Building in St. Thomas, VI.

NEWARK, N.J. - A Nigerian national extradited from Canada will appear in court today for his alleged role in a scheme that defrauded vendors of office products valued at nearly $1 million by “phishing” e-mail login information from government employees, U.S. Attorney Craig Carpenito announced.

A former U.S. Army Reserve employee was sentenced today to 18 months’ imprisonment followed by three years of supervised release on charges of wire fraud and theft of government money as part of a scheme to steal more than $400,000 from the 63rd Regional Support Command at Moffett Field in Mountain View, California.

Igor Yurkovetsky pleaded guilty today in connection with an ongoing investigation into a conspiracy to rig bids submitted to the Government Services Administration (GSA), the Department of Justice announced.

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bristow, Oklahoma, resident GEORGE PHILLIP TIGER, age 69, entered a guilty plea today to Bribery Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.

The Department of Justice announced today that United Parcel Service Inc. (UPS) has agreed to pay the United States $8.4 million to resolve allegations that it overcharged federal agencies for package delivery services under a General Services Administration (GSA) contract.

WICHITA, KAN. – A man from El Dorado was indicted Wednesday on charges that even though he already was a registered sex offender he produced and distributed child pornography, U.S. Attorney Stephen McAllister said.

DENVER – United States Attorney Jason R. Dunn announces that Pueblo business owner Mary Catherine Grasmick pled guilty to falsifying records with the intent to obstruct a federal investigation. The plea was accepted by U.S. District Court Judge Daniel D. Domenico yesterday in United States District Court in Denver. Sentencing is scheduled for December 17, 2019.

Contractor agrees to $2.4 million settlement in whistleblower case

LITTLE ROCK—A Little Rock man was sentenced for orchestrating a scheme that defrauded a government program intended help non-profits, municipal agencies, and disadvantaged businesses. Mark Gregory Jackson, Sr., 62, of Little Rock, was sentenced to 60 months in federal prison by United States District Judge Brian S. Miller.

Luke Hillier, the majority owner and former Chief Executive Officer of Virginia-based defense contractor ADS, Inc., has agreed to pay the United States $20 million to settle allegations that he violated the False Claims Act by fraudulently obtaining federal set-aside contracts reserved for small businesses that his company was ineligible to receive, the Department of Justice announced today.

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the August 2019 Federal Grand Jury.

OKLAHOMA CITY – A federal grand jury has returned an indictment charging CHRISTINA ROCHELLE ANGLIN, of Burnsville, North Carolina, with six counts of failure to collect and pay over employment taxes, announced U.S. Attorney Timothy J. Downing.

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bristow, Oklahoma, resident GEORGE PHILLIP TIGER, age 69, has been Indicted for Bribery Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.

U.S. Attorney John H. Durham and officials from the U.S. Small Business Administration and U.S. General Services Administration today announced that CLASSIC SITE SOLUTIONS, INC. (“CSS”) and its owner, CHERYL SADY, have entered into a civil settlement agreement with the United States in which they will pay $1.3 million dollars to resolve allegations that they violated the False Claims Act.

PHILADELPHIA – United States Attorney William M. McSwain announced that Support of Microcomputers Associates (“SOMA”) has agreed to a judgment against it in the amount of $300,000 for selling printers and other equipment to federal agencies that was manufactured in China and other non-compliant countries.