News

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

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.

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.

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.

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.

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.

KANSAS CITY, Mo. – Two men have been indicted by a federal grand jury for a conspiracy in which they fraudulently profited from hundreds of millions of dollars in federal government contracts they were not entitled to receive, which were set aside for small businesses owned and controlled by service-disabled veterans, and minorities.

NORFOLK, Va. – A former member of the Virginia General Assembly was sentenced today to two and a half years in prison for his role in a conspiracy that resulted in the fraudulent award of over $80 million in government contracts.

SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Jim A. Meron, 54, of Granite Bay, today to 33 months in prison and three years of supervised release on two counts of wire fraud arising out of a government-procurement fraud scheme, U.S. Attorney McGregor W. Scott announced.

PROVIDENCE – A Brooklyn, N.Y., clothing and goods wholesaler pleaded guilty in U.S. District Court in Providence today to charges related to his participation in a conspiracy that sold more than twenty million dollars worth of Chinese-made counterfeit goods to the United States military, government purchasers, and companies that supply the U.S. Government.

United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with 18 counts of Wire Fraud and one count of Theft of Government Property.

An Olathe, Kan., man who conspired with others to control construction businesses that received hundreds of millions of dollars in federal government contracts, pleaded guilty in federal court today to defrauding the government with respect to contracts set aside for service-disabled veterans and certified minorities.

EUGENE, Ore.—Jeffrey Robert Cotton, 45, the former Manager of the Burns Municipal Airport in Burns, Oregon, was sentenced today to 4 years’ probation and 300 hours of community service for stealing thousands of dollars of equipment that rightfully belonged to the City of Burns, by converting to his personal use property acquired through the Federal Personal Property Utilization Program.

PROVIDENCE – A criminal information filed today in U.S. District Court in Providence, R.I., in an ongoing investigation, charges a Brooklyn, N.Y., clothing and goods wholesaler with conspiracy to commit wire fraud and trafficking in counterfeit goods in connection with the alleged sale of more than twenty million dollars worth of Chinese-made counterfeit goods to the United States military and other government purchasers, as well as to other companies that supply the U.S. Government.

MUSKOGEE, OKLAHOMA – A federal grand jury in the Eastern District of Oklahoma returned a twelve-count indictment Wednesday afternoon charging two individuals in connection with the theft and embezzlement of funds from business entities wholly owned by the Alabama-Quassarte Tribal Town (AQTT) of Wetumka, OK.

Informatica LLC f/k/a Informatica Corporation has agreed to pay $21.57 million to resolve allegations that it caused the government to be overcharged by providing misleading information about its commercial sales practices that was used in General Services Administration (“GSA”) contract negotiations, the Justice Department announced today. Informatica is a software development company, headquartered in Redwood City, California that sells tools for establishing and maintaining data warehouses.

CHICAGO — A recycling executive has been sentenced to three years in federal prison for illegally landfilling potentially hazardous electronic waste as part of a scheme to re-sell the materials and avoid paying income taxes.

A former U.S. Army Reserve employee pleaded guilty today to 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, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

Marshall Holland, the owner of a Texas company that purchases computers to resell and recycle, 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.

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, was charged with 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.

KANSAS CITY, KAN. - Troy L. Bechtel, 49, of Overland Park, Kan., is charged in a federal indictment with two counts of major program fraud against the United States and two counts of lying to federal investigators, U.S. Attorney Stephen McAllister said.

The Office of Inspector General of the General Services Administration today issued its "Evaluation of GSA's Management and Administration of the Old Post Office Building Lease."

Jim A. Meron, 54, of Granite Bay, pleaded guilty today to wire fraud related to a government-procurement fraud scheme, U.S. Attorney McGregor W. Scott announced.

On Friday, October 12, 2018, 40 years to the day that President Jimmy Carter signed the Inspector General Act of 1978, the Council of the Inspectors General on Integrity and Efficiency will host an event at the Carter Presidential Center in Atlanta, Georgia, to commemorate the impact of federal Inspectors General.

The owner of two recycling businesses illegally landfilled potentially hazardous electronic waste as part of a scheme to re-sell the materials and avoid paying income taxes, according to his guilty plea in federal court in Chicago.

Arturo Vargas, 55, a businessman from El Paso, Texas, pleaded guilty today in federal court in Albuquerque, N.M., to participating in a fraudulent scheme to defraud the United States out of millions of dollars through contracts involving the now defunct Big Crow Program Office at Kirtland Air Force Base in Bernalillo County, N.M.

United States Attorney Matthew D. Krueger announced today that Nicholas Rivecca, Sr., of Hartland, Wisconsin, and his company, Sonag Ready Mix, LLC, located in Milwaukee, Wisconsin, have agreed to pay $629,732 to resolve allegations that they violated the False Claims Act by defrauding the United States Department of Transportation’s Disadvantaged Business Enterprise (“DBE”) program.

A Tennessee man has been sentenced to 24 months in federal prison for major fraud against the United States. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the sentence today.

The Council of the Inspectors General on Integrity and Efficiency (CIGIE) continues a year-long effort to educate the public about, and commemorate the impact of, the Inspector General Act of 1978 and the work of federal Inspectors General (IG) in the 40 years since passage of the Act. As part of this effort, the IG community will host a series of events this fall across the country.

A former operator of a local construction company, Patriot Company, Inc., was sentenced in federal court today for his role in a “rent-a-vet” scheme to fraudulently obtain more than $13.7 million in federal contracts.

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gregory Ciego, age 35, of Drums, Pennsylvania, pleaded guilty on August 17, 2018, to a criminal information charging him with theft of government property.

On August 6, 2018, the former President and Chief Executive Officer of Wellco Enterprises, Inc. (Wellco), and Tactical Holdings Operations, Inc. (Tactical Holdings), Vincent Lee Ferguson, 66, of Knoxville, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 41 months in federal prison for his role in a wire fraud conspiracy.

The Office of the United States Attorney for the District of Vermont announced that Bhaskar Patel, 67, of Windermere, Florida, appeared today in federal district court in Rutland to answer to charges that, while employed by Schneider Electric Building Americas, he unlawfully solicited and accepted $2,536,119.19 in bribes and kickbacks associated with federal energy savings performance contracts (“ESPCs”) issued to Schneider Electric by various federal agencies.

Three Little Rock men pleaded guilty to participating in a fraudulent scheme that generated over $1 million in illicit profits by exploiting a government program designed to help distressed businesses.

Richard C. Davis, the founder and former president and CEO of Michigan-based Second Chance Body Armor, Inc., agreed to resolve claims under the False Claims Act in connection with his role in the sale of defective Zylon bullet-proof vests purchased by the United States for federal, state, local and tribal law enforcement agencies, the Justice Department announced today. Mr. Davis will relinquish his interest in $1.2 million in assets previously frozen by the United States and will pay an additional $125,000 to the United States.

Six defendants have been indicted by a federal grand jury on charges of stealing expensive cars from dealerships in three states, altering their Vehicle Identification Numbers (VIN), and fraudulently obtaining new titles for the cars.

A New York man pleaded guilty today to committing government contracting fraud. According to court documents, Alter Stesel, aka Herman Stesel, aka Randy Stern, aka Henry Shtaiseel, 41, of Brooklyn, was a government contractor based in Brooklyn. Stesel and his company, A1 4 Electronics Inc., were placed in proposed debarment status by the U.S. Department of Homeland Security for providing counterfeit goods and for a history of failure to perform or unsatisfactory performance on contracts.

An Athens, Alabama computer store owner has been charged with exploiting a government computer surplus program for his personal benefit. A federal grand jury today returned its indictment of Steven Mays, 50, of Athens, Ala. The indictment alleges that from 2007 to late 2017, Mays engaged in a scheme to defraud “Computers for Learning,” a program administered by the General Services Administration. The CFL program facilitated the transfer of computers and related equipment owned by the federal government but excess to its needs, directly to schools and some educational nonprofit organizations at no cost.

A retired soldier pleaded guilty today to receiving and selling stolen government property that had been initially delivered to at Fort Eustis.

A Missouri man pleaded guilty today to committing fraud to obtain millions of dollars in government contracts, U.S. Attorney Stephen McAllister said.

On Wednesday, July 11, 2018, at the U.S. Capitol Visitor Center, the Council of the Inspectors General on Integrity and Efficiency (CIGIE) will host an all-day conference to educate the public about the impact of the Inspector General Act of 1978 and the work of federal Inspectors General in the 40 years since passage of the Act. Discussion will feature distinguished speakers including Senator Chuck Grassley of Iowa and other Members of Congress, Inspectors General, academics, and others in the oversight community.

United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced today that three defendants agreed to plead guilty to an Information charging them with federal crimes related to a long-term fraud scheme led by Brian L. Ganos involving government-funded contracts intended to benefit small businesses.

Today, the Council of the Inspectors General on Integrity and Efficiency (CIGIE) released its first-ever report of the top management and performance challenges facing multiple federal agencies. For nearly 20 years, individual Inspectors General have created management challenges reports identifying the most critical, systemic problems facing the agencies they oversee. Today’s report marks the first time that the Inspectors General, through CIGIE, have examined these reports from across the federal government to identify and analyze challenges that are common to their agencies.

United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced that on April 3, 2018, a federal grand jury returned a twenty-two count Indictment charging three defendants with a 12-year fraud and money laundering scheme involving over $200 million in government-funded contracts intended to benefit small businesses. The Indictment named individuals Brian L. Ganos (age: 57) of Muskego and Mark F. Spindler (age: 56) of Menomonee Falls, and the business Sonag Company, Inc. as defendants. In a related case, Nicholas Rivecca, Sr. (age: 68) of Hartland, agreed to plead guilty to an Information charging him with conspiring to defraud the United States.

Toyobo Co. Ltd. of Japan and its American subsidiary, Toyobo U.S.A. Inc., f/k/a Toyobo America Inc. (collectively, Toyobo), have agreed to pay $66 million to resolve claims under the False Claims Act that they sold defective Zylon fiber used in bullet proof vests that the United States purchased for federal, state, local, and tribal law enforcement agencies, the Justice Department announced today.

A Utah man pleaded guilty to wire fraud and money laundering in federal court Tuesday afternoon for his role in a fraud scheme he devised to obtain government construction contracts set aside for Service-Disabled Veteran-Owned Businesses.

On February 15, 2018, the former President and Chief Executive Officer of Wellco Enterprises, Inc. (Wellco) and Tactical Holdings Operations, Inc. (Tactical Holdings), Vincent Lee Ferguson, 66, of Knoxville, Tennessee, pleaded guilty to conspiracy to commit wire fraud. Wellco’s former Senior Vice President of Sales, Matthew Lee Ferguson, 41, of Geneva, Illinois, and former Director of Marketing and Communications, Kerry Joseph Ferguson, 36, of Houston, Texas, also pleaded guilty to conspiracy to commit wire fraud.

Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that former owners of a local construction company, Patriot Company, Inc., have pleaded guilty in federal court to their roles in a “rent-a-vet” scheme to fraudulently obtain more than $13.8 million in federal contracts.

Jeffrey Harrington and Michael Mayer, owners of several defense contracting firms, were each sentenced in federal court today to 15 months in custody for conspiring to commit wire fraud and file false claims, and to making false statements on their federal income tax returns.