News

CHARLESTON, W.Va. – A Texas man, formerly of Charleston, pleaded guilty Monday to a federal financial crime, announced United States Attorney Carol Casto, General Services Administration Inspector General Carol Fortine Ochoa, and Department of Labor, Office of Inspector General, Special Agent-in-Charge of the Philadelphia Regional Office Richard Deer. Kevin Mabone, 56, entered his guilty plea to misappropriating government funds while he was working at the Charleston Job Corps Center.

The U.S. General Services Administration (GSA) Office of Inspector General (OIG) issued a report today concluding that GSA’s 18F organization has experienced a cumulative net loss totaling over $31 million between fiscal year 2014 and the third quarter of fiscal year 2016. This is due to 18F’s inaccurate financial projections, increased staffing levels, and the amount of staff time spent on non-billable activities, all of which have affected cost recovery. The OIG started the evaluation in December 2015 after several senior GSA officials expressed concerns about the management of 18F to the OIG.

Earlier today, the U.S. Attorney’s Office for the Eastern District of New York (the Office) filed fraud charges in Brooklyn federal court against Plaza Construction LLC, successor to Plaza Construction Corp. (Plaza Construction), one of the largest construction firms in New York City. Plaza Construction is charged with mail and wire fraud conspiracy for improperly billing its clients more than $2.2 million over a thirteen-year period for hours not worked and for inserting a hidden surcharge into its bills for the purpose of obtaining payments to offset administrative costs.

GREENEVILLE, Tenn. – On Sept. 13, 2016, a federal grand jury in Greeneville returned an indictment against Vincent Lee Ferguson, 65, of Knoxville, Tenn.; Matthew Lee Ferguson, 40, of Lenoir City, Tenn.; Kerry Joseph Ferguson, 35, of Houston, Texas; Matthew Harrison Martland, 32, of Knoxville, Tenn.; and Stephanie Lynn Kaemmerer, 44, of Knoxville, Tenn., for wire fraud, conspiracy to commit wire fraud, major fraud against the United States, and smuggling goods into the United States.

WASHINGTON – Walter Crummy, a former officer and owner of MCC Construction Company (MCC), pleaded guilty to a federal charge of conspiring to commit wire fraud. Crummy also agreed to pay forfeiture in the amount of $105,618.

SHERMAN, Texas – A 45-year-old Frisco, Texas man has been sentenced to federal prison for disabled veteran related fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Alexander Robert Xavier, 51, of Jensen Beach, Florida, was found guilty on July 14, 2016, of defrauding federal agencies by issuing fraudulent bonds to insure government construction projects.

En Pointe Gov. Inc., En Pointe Technologies Inc., En Pointe Technologies Sales Inc., Dominguez East Holdings LLC and Din Global Corp., all of Gardena, California, have agreed to resolve allegations that they violated the False Claims Act by falsely certifying that En Pointe Gov. Inc. was a small business in order to obtain contracts set aside for small businesses and underreporting sales under a General Services Administration (GSA) contract to avoid the payment of fees, the Department of Justice announced today. Under the settlement agreement, the companies have agreed to pay slightly more than $5.8 million. En Pointe Gov. Inc. is now known as Modern Gov IT Inc.; En Pointe Technologies Sales Inc. is now known as Collab9 Inc.; and En Pointe Technologies Inc. is now known as Dinco Inc.

WASHINGTON – Tarsem Singh, 61, a businessman from Fairfax, Va., was sentenced today to 15 months in prison for conspiring to commit fraud on the United States by illegally obtaining over $6 million in contracts that were meant for small, disadvantaged businesses.

WASHINGTON – Thomas Harper, a former officer and owner of MCC Construction Company (MCC), pled guilty today to conspiring to obstruct justice before the Small Business Administration (SBA). Harper also agreed to pay restitution in the amount of $165,711.

ALEXANDRIA, Va. – Helen Renee Ballard, 51, and Robert S. Ballard, 55, both of Brandywine, Maryland, were indicted by a federal grand jury today on charges of conspiracy, wire fraud, aggravated identity theft, and false statements for their roles in a scheme to fraudulently obtain employment from the U.S. government and federal contractors for family members.

The Department of Justice announced today that Deloitte Consulting LLP (Deloitte) has agreed to pay $11.38 million to resolve allegations under the False Claims Act that it submitted false claims under a General Services Administration (GSA) contract.

Moustafa Ahmed Ibrahim, 37, of Harrisonburg, Virginia pleaded guilty today to paying bribes to public officials in order to obtain government contracts for his company.

General Services Administration Office of Inspector General special agents from Boston, Massachusetts, recovered the Works Progress Administration oil painting, "Old Ironsides, USS Constitution," by Vadim Vladimirovich Morosoff from Thomaston Place Auction Galleries in Maine yesterday.

Brian J. Garrahan, 42, and Kelly A. Spillman 34, both of Delray Beach, Florida, pled guilty today for their participation in a conspiracy to defraud over ten federal agencies by issuing fraudulent bonds to insure government contracts.

The U.S. General Services Administration (GSA) Office of Inspector General (OIG) issued two reports today concluding that GSA-managed facilities are at an increased risk of unauthorized access due to GSA’s lack of controls over facility specific building access badges and deficiencies in GSA’s management of Homeland Security Presidential Directive 12 (HSPD-12) Personal Identity Verification (PIV) cards issued to contractors. Unauthorized access to these facilities increases the risk of a security event such as an active shooter, terrorist attack, theft of government property, or exposure of sensitive information.

WASHINGTON – The Justice Department announced today that MCC Construction Company (MCC) has agreed to pay $1,769,294 in criminal penalties and forfeiture for conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses.

SACRAMENTO, Calif. — Eric M. Shaffer, 42, of Modesto, was sentenced today by United States District Judge John A. Mendez to one year and a day in prison for theft of Department of Defense property worth more than $316,000, United States Attorney Benjamin B. Wagner announced.

The Department of Justice announced today that Wisconsin-based Novum Structures LLC (Novum) has agreed to enter a guilty plea and pay $3 million to resolve its criminal and civil liability arising from its improper use of foreign materials on construction projects involving federal funds. This use was in violation of contractual provisions implementing various domestic preference statutes, often referred to colloquially as the “Buy America” requirements. Novum specializes in the design and construction of glass space frames often used in roofs and atrium enclosures.

LOS ANGELES – A man who operated two businesses that sold office supplies to the federal government has been convicted by a federal jury of giving illegal gifts to federal employees who did business with his companies.

Earlier today, the U.S. Attorney’s Office for the Eastern District of New York (“the Office”) filed fraud charges in Brooklyn federal court against Tishman Construction Corporation (“Tishman Construction”), one of the largest construction companies in New York City. Tishman Construction is charged with mail and wire fraud conspiracy for improperly billing its clients more than $5 million over a ten-year period for hours not worked and at rates that were in excess of the agreed upon contract rate.

KANSAS CITY, KAN. - The co-owner of a defunct Missouri construction company has been sentenced to 51 months in federal prison for defrauding a federal program that set aside contracts for businesses owned by service-disabled veterans, U.S. Attorney Barry Grissom said Thursday.

On October 28, 2015, U.S. General Services Administration (GSA) Office of Inspector General (OIG) special agents from New York City recovered a Works Progress Administration (WPA) etching, “Manhattan from Brooklyn” by artist Mortimor Borne, from an antiques store in Hopewell, New Jersey.

Timothy Francis Cashman, a Building Manager for the General Services Administration (“GSA”), was sentenced to 16 months in custody today for accepting bribes and stealing property owned by the United States.

KANSAS CITY, KAN. - A Missouri woman was sentenced Tuesday to 20 months in federal prison for defrauding a federal program that set aside contracts for businesses owned by service-disabled veterans, U.S. Attorney Barry Grissom said. In addition, she was ordered to pay a $30,000 money judgment.

DENVER – Hemal Ramesh Jhaveri, the owner and former CEO of SofTec Solutions Inc. of Englewood, Colorado, was sentenced in federal court in Denver earlier this week to six months in prison. Jhaveri pleaded guilty earlier this year to conspiring to commit the crimes of making false statements to influence the Small Business Administration (SBA) and of filing false federal income tax returns. The conspiracy began in 2006 and continued to 2013.

PHILADELPHIA - Benjamin Twiggs, 37, of Philadelphia, Pennsylvania, was charged by indictment yesterday with one count of making a false statement and one count of transportation of goods taken by fraud, announced United States Attorney Zane David Memeger. The fraud is in connection with the federal Computers for Learning (CFL) program, a program meant to allow federal agencies to donate excess computer equipment to schools and educational nonprofit organizations.