News

St. Louis, MO – ICP Medical, a government contractor based in Earth City, Missouri, has signed a civil settlement agreement and paid $4,000,000 to resolve allegations that it submitted false claims for medical items to the U.S. Department of Veterans Affairs and U.S. Department of Defense.

NEWPORT NEWS, Va. – Roy E. Friend, 52, of Newport News, was sentenced today to 33 months in prison for stealing government property.

CHICAGO — The owner of two recycling businesses was arrested today for allegedly operating a multi-million dollar fraud scheme involving the illegal landfilling or re-selling of potentially hazardous electronic waste.

ALEXANDRIA, Va. – ThunderCat Technology, LLC, located in Reston, has agreed to pay $1 million to settle civil False Claims Act, Anti-Kickback Act, and Procurement Integrity Act claims relating to bid rigging and kickback schemes in connection with six government procurements.

Alexander Robert Xavier, 52, of Boca Raton, Florida, was sentenced to twelve-and-a-half years in prison. Previously, a jury found Xavier guilty of defrauding federal agencies by issuing worthless bonds to insure government construction projects. U.S. District Judge Kenneth A. Marra imposed the sentence and ordered Xavier to pay over $4 million in restitution to the victims of the fraud.

BOSTON – A previously convicted Chelmsford man has been ordered to forfeit more than $6.7 million in connection with his June 2016 conviction for recruiting veterans as figurehead owners of a construction company in order to receive specialized government contracts.

Michelle Cho, an officer of Far East Construction Corporation and other construction companies, pleaded guilty today to a federal charge of conspiring to commit wire fraud. Cho also agreed to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.

COEUR D’ALENE – Matt Eugene Ruck, 49, of Moscow, Idaho, was sentenced yesterday in United States District Court to 60 months in prison followed by 3 years supervised release for wire fraud and theft of government money, unlawful possession of firearms and making a false statement, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Ruck to pay $206,081.35 in restitution. In Ruck’s first case, a jury found him guilty of wire fraud and theft of government money in March of this year. In his second and third cases, Ruck pleaded guilty on August 23, 2016, to unlawful possession of firearms and making a false statement.

COEUR D’ALENE – William Douglas Brown, 72, of Moscow, Idaho, was sentenced yesterday by Senior U.S. District Judge Edward J. Lodge to two years probation for unlawful possession of firearms and ammunition and making a false statement, U.S. Attorney Wendy J. Olson announced. Brown pleaded guilty in both cases on August 23, 2016.

Brian J. Garrahan, 42, and Kelly A. Spillman, 35, both of Delray Beach, Florida, were ordered to pay over $4 million for their participation in a conspiracy to defraud federal agencies and federal contractors by issuing fraudulent bonds to insure government contracts.

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.