U.S. Department of Justice
U.S. Attorney's Office, District of Nevada
October 29, 2026
SOUTH BEND – Stephen A. Schemenauer, 46 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to Concealing a Material Fact, announced United States Attorney Adam L. Mildred.
Schemenauer was sentenced to 24 months in prison followed by one year of supervised release and ordered to pay a $225,000 fine.
According to documents in the case, Mr. Schemenauer offered consulting services to businesses with contracts with the General Services Administration (GSA) of the US Government. After submitting a falsified document to the GSA, Mr. Schemenauer’s consulting service was debarred by the GSA from February 2022 through February 2025; this prohibited him from conducting business with the federal government. Despite his debarment, Mr. Schemenauer soon opened a new business under a different name and continued his consulting services with the GSA, all while concealing his true identity from the GSA. For three years, Mr. Schemenauer fraudulently operated his consulting services under the new business name and assumed identity, obtaining approximately $440,000 from clients, all while knowing that he was not permitted to do so. Mr. Schemenauer was charged and pleaded guilty to concealing his identity from the GSA by submitting emails and documents signed in someone else’s name. He admitted that he willfully concealed his identity from the GSA because if the GSA had known the true identity behind his communications, the GSA would not have approved his continued consulting services.
“An integrity-driven government contracting system relies entirely on honesty, transparency, and accountability. When individuals use deception to bypass federal safeguards, they undermine the public trust and compromise the fairness of the entire procurement process. Today’s sentence sends a clear, unequivocal message to anyone contemplating white-collar crime: federal debarment is a severe legal barrier, not an administrative hurdle to be outmaneuvered through deceit. Debarment is a critical tool used by the United States government to protect taxpayer dollars from individuals who have proven themselves untrustworthy. Using fraudulent means to circumvent this protection is a serious federal crime. This office, alongside our federal law enforcement partners, remains relentlessly committed to aggressively investigating and prosecuting white-collar criminals who attempt to cheat the system for personal gain. Today's sentence underscores our commitment to maintaining a level playing field and ensuring that those who attempt to deceive the federal government face meaningful, just consequences,” said US Attorney Adam L. Mildred.
“The federal suspension and debarment process helps prevent government agencies from doing business with irresponsible and dishonest contractors,” said U.S. General Services Administration Acting Inspector General Robert C. Erickson. “We will continue to investigate those who use false information to bypass government safeguards and compromise the integrity of federal systems.”
This case was investigated by the United States General Services Administration Office of Inspector General. The case was prosecuted by Assistant United States Attorney Luke N. Reilander.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Source: Department of Justice press release
