News

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.