News

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.

Netcracker Technology Corp. (NTC), a global software company serving the telecommunications industry, has agreed to implement enhanced security protocols for software development, implementation, and its other services to clients, many of whom are part of the United States’s critical communications infrastructure, announced Dana Boente, Acting Assistant Attorney General of the Justice Department’s National Security Division and U.S. Attorney for the Eastern District of Virginia. NTC is headquartered in Waltham, Massachusetts, and is a wholly owned subsidiary of NEC Corp.

A federal grand jury sitting in Albuquerque, N.M., returned an indictment yesterday charging four men with exploiting the now defunct Big Crow Program Office at Kirtland Air Force Base to perpetuate a multi-million dollar scheme to defraud the United States.

Memphis, TN – After two days of the trial before U.S. District Judge John T. Fowlkes, Jr., the defendant M. Cleve Collins entered a plea of guilty to the indictment charging him with one count of major fraud against the United States. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the conviction today.

A federal grand jury in the Eastern District of California returned an indictment yesterday against two individuals for allegedly conspiring to defraud the United States, the Department of Justice announced.

WASHINGTON – Nikita Davis, 48, a business owner with a firm in Washington, D.C., was sentenced today to 20 months in prison for a scheme in which she improperly qualified for government contracts and then fraudulently billed the United States more than $1.1 million.

Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Michael Pirolo (48, Palm Harbor) to four years and two months in federal prison for wire fraud. As part of his sentence, the Court also entered a money judgment in the amount of $594,000, the proceeds of the criminal conduct. Pirolo pleaded guilty on April 10, 2017.

Virginia Beach, Virginia-based contractor ADS Inc. and its subsidiaries have agreed to pay the United States $16 million to settle allegations that they violated the False Claims Act by knowingly conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts, the Department of Justice announced today. The settlement further resolves allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts.

ALEXANDRIA, Va. – A former senior official with the General Services Administration and her husband were sentenced today to 18 months and 1 year in prison, respectively, for engaging in a nepotism hiring scheme.

A former Captain of the Idaho and Washington National Guard was sentenced today in U.S. District Court in Tacoma to three years in prison, three years of supervised release, and $646,300 in restitution for his lengthy scheme to defraud multiple government programs, announced U.S. Attorney Annette L. Hayes.

Michelle Cho, an officer of Far East Construction Corporation (Far East) and other construction companies, was sentenced today to six months in prison and 24 months of supervised release on a federal charge of conspiring to commit wire fraud. Cho was also ordered to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Michael Pirolo (48, Palm Harbor) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison.

ALEXANDRIA, Va. – A former senior official with the General Services Administration and her husband pleaded guilty today to engaging in a nepotism scheme in which they conspired to fraudulently obtain employment from the U.S. government and private federal contractors.

CA Inc. (CA) has agreed to pay $45 million to resolve allegations under the False Claims Act that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract, the Department of Justice announced today. CA is an information technology management software and services company headquartered in New York, New York.

Jeffrey Harrington and Michael Mayer, the owners of several defense contracting firms, pleaded guilty before U.S. Magistrate Judge Karen Crawford this morning to conspiring to commit wire fraud and file false claims, and to making false statements on their federal income tax returns.

The Office of Inspector General (OIG) for the General Services Administration (GSA) issued a report today concluding that GSA’s Office of 18F routinely disregarded and circumvented fundamental security policies and guidelines. The OIG began this evaluation after finding violations of GSA information technology (IT) security policies during the course of a previous review of 18F’s business operations. In May 2016, the OIG issued a management alert report regarding the security violations that prompted this evaluation, and in October 2016, the OIG issued its report on 18F’s business operations.

CHARLESTON, W.Va. – A Texas man, formerly of Charleston, was sentenced today to six months in federal prison for a financial crime, announced United States Attorney Carol Casto. Kevin Mabone, 56, previously pleaded guilty to misappropriating government funds. He was also ordered to pay $6,684.40 in restitution.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a local construction company and a Kansas City, Mo., veteran were indicted by a federal grand jury today for their roles in a “rent-a-vet” scheme to fraudulently obtain more than $13.8 million in federal contracts.