Posted on 02/10/2020 2:47:02 PM PST by ransomnote
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 Field Office, Special Agent in Charge Sean Ragan of the FBI’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.
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.
That’s a long time for a white-collar guy. Good luck in there pal, you’re gonna need it.
So Q got arrested?
Hunter?
I love seeing this. Finally the swamp creatures are being identified and eliminated. And yes, these guys are swampies
“”””””But when Neal was paid by the government for his subcontractors’ work, he did not pay his subcontractors.”””
Something ain’t right. I have done subcontracting on government projects for 40 years. If the general contractor did not pay me in a timely manner I would let the Owner or contracting officer know and they would do something about it.
A bond would be required on these jobs and you can also file against that.
Maybe he said "the check is in the mail" with flowers.
And here I'd always thought Q to be smarter than that.
Hey, 57 months isn't that long to wait for new "drops".
Maybe there are some secret moneys in a tunnel. ;-)
“So Q got arrested?”
Well played.
L
3.7 million dollars would take a lot of flowers.
And for it to go on for 10 years is really odd.
When you work for the govt it’s OK to waste millions, but if you put a dime of it in your pocket you go to jail.
Never underestimate flower power.
The gift of flowers can warm the coldest heart.
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