02/10/2020 - Government Contractor Sentenced to 57 Months ...

THE llNlTli. ST 'J'J;;S DEP' ARTME N Tp JUSTICE ~iF) ICE NEWS C 2/13/2020 Government Contractor Sentenced to 57 Months in Prison for $3.7 Million Procurement Fraud Scheme IOPA I Department of Justice IE!! An official website of the United States government Here's how )'.OU know FOR IMMEDIATE RELEASE Department of Justice Office of Public Affairs Monday, February 10, 2020 Government Contractor Sentenced to 57 Months in Prison for $3.7 Million Procurement Fraud Scheme A former government contractor was sentenced to 57 months in prison today for his role in carrying out a $3.7 million scheme to defraud at least 35 subcontractors located across the United States. Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, Special Agent in Charge David A. House of the Department of Interior Office of Inspector General's (DOI-OIG} Western Region Office of Investigations, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command's (Army CID) Major Procurement Fraud Unit, Pacific Fraud Fiel Office, Special Agent in Charge Sean Ragan of the FBl's Sacramento Division, Special Agent in Charge Jason Hein of the Air Force Office of Special Investigations' (Air Force OSI) Office of Procurement Fraud Unit, and Special Agent in Charge Brian Denny of the Defense Criminal Investigative Service's (DCIS) Western Field Office made the announcement. d Chester L. Neal Jr ., 45, of Bourbon Oak, Missouri, was sentenced by U.S. District Judge Dale A. Drozd of the Eastern District of California. Judge Drozd also ordered Neal to pay restitution in the amount of $3,734,927.50. Neal pleaded guilty on Aug. 19, 2019, to one count of mail fraud. According to admissions made in connection with his plea, Neal established and controlled several companies through which he bid on and won at least 105 government contracts to provide goods and services to federal agencies including the Department of Interior, U.S. Army and U.S. Air Force. The contracts required Neal to purchase and transport rock, gravel, and other raw materials to military bases and national parks. After winning these contracts, Neal fraudulently induced subcontractors to perform the required work. But when Neal was paid by the government for his subcontractors' work, he did not pay his subcontractors. Instead, Neal kept the money and spent it at places like casinos, nightclubs, restaurants and hotels. In total, between July 2008 and December 2017, Neal defrauded his subcontractors out of approximately $3.7 million. DOI-OIG, Army CID, the FBI, Air Force OSI and DCIS investigated this matter. Trial Attorney Kyle W. Maurer of the Criminal Division's Fraud Section and Assistant U.S. Attorney Grant B. Rabenn of the Eastern District of California prosecuted the case. The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years. Topic(s): Financial Fraud Component(s): Criminal Division Criminal - Criminal Fraud Section USAO - California, Eastern https://www.justice.gov/opa/pr/government-contractor-sentenced-57-months-prison-37-million-procurement-fraud-scheme 1/2

Upload
others
Category

Documents
view
0
download
0

Embed Size (px):

Transcript of 02/10/2020 - Government Contractor Sentenced to 57 Months ...

Page 1: 02/10/2020 - Government Contractor Sentenced to 57 Months ...

THE llNlTli. ST 'J'J;;S

DEP'ARTMENTp J USTICE ~iF) ICE NEWS C

2/13/2020 Government Contractor Sentenced to 57 Months in Prison for $3.7 Million Procurement Fraud Scheme IOPA I Department of Justice

IE!! An official website of the United States government Here's how )'.OU know

FOR IMMEDIATE RELEASE

Department of Justice

Office of Public Affairs

Monday, February 10, 2020

Government Contractor Sentenced to 57 Months in Prison for $3.7 Million Procurement Fraud Scheme

A former government contractor was sentenced to 57 months in prison today for his role in carrying out a $3.7 million scheme to defraud at least 35 subcontractors located across the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, Special Agent in Charge David A. House of the Department of

Interior Office of Inspector General's (DOI-OIG} Western Region Office of Investigations, Special Agent in Charge RayPark of the U.S. Army Criminal Investigation Command's (Army CID) Major Procurement Fraud Unit, Pacific Fraud FielOffice, Special Agent in Charge Sean Ragan of the FBl 's Sacramento Division , Special Agent in Charge Jason Hein ofthe Air Force Office of Special Investigations' (Air Force OSI) Office of Procurement Fraud Unit, and Special Agent in

Charge Brian Denny of the Defense Criminal Investigative Service's (DCIS) Western Field Office made the announcement.

Chester L. Neal Jr., 45, of Bourbon Oak, Missouri, was sentenced by U.S. District Judge Dale A. Drozd of the Eastern

District of California. Judge Drozd also ordered Neal to pay restitution in the amount of $3,734,927.50.

Neal pleaded guilty on Aug . 19, 2019, to one count of mail fraud . According to admissions made in connection with his plea, Neal established and controlled several companies through which he bid on and won at least 105 government contracts to provide goods and services to federal agencies including the Department of Interior, U.S. Army and U.S. Air

Force. The contracts required Neal to purchase and transport rock, gravel, and other raw materials to military bases and national parks. After winning these contracts, Neal fraudulently induced subcontractors to perform the required work. But when Neal was paid by the government for his subcontractors' work, he did not pay his subcontractors.

Instead, Neal kept the money and spent it at places like casinos, nightclubs, restaurants and hotels. In total, between July 2008 and December 2017, Neal defrauded his subcontractors out of approximately $3.7 million.

DOI-OIG, Army CID, the FBI, Air Force OSI and DCIS investigated this matter. Trial Attorney Kyle W. Maurer of the Criminal Division's Fraud Section and Assistant U.S. Attorney Grant B. Rabenn of the Eastern District of California prosecuted the case.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Topic(s): Financial Fraud

Component(s): Criminal Division

Criminal - Criminal Fraud Section USAO - California, Eastern

https://www.justice.gov/opa/pr/government-contractor-sentenced-57-months-prison-37-million-procurement-fraud-scheme 1/2