Manhattan Federal Court Charges Manhattan Businessman With Fraudulently Obtaining Government Procurement Agreement

Manhattan Businessman Charged In Manhattan Federal Court For Fraudulently Obtaining Government Procurement Contract
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By Daniel Webster, dWeb.News

Audrey Strauss, United States Attorney for New York’s Southern District, and William W. Richards (Special Agent in Charge of United States Air Force Office of Procurement Fraud Investigations), announced today that RAYMOND White, a/k/a John Raymond Anthony White, a/k/a Raymond Alexander White, was arrested by agents of the Air Force Office of Special Investigations as well as the Army Major Procurement Fraud Unit at his New York, New York residence. WHITE is accused of submitting false information about WHITE’s general contract business’s finances, prior performance of contracts, in order to obtain a contract for a munitions load crew trainer facility at Joint Base Andrews (Maryland). He also submitted false information to the United States Small Business Administration to induce them to guarantee 80% of the performance bonds and payment bonds. The contract was valued at more than $4.8 million. Audrey Strauss, Manhattan U.S. Attorney, stated that Raymond White lied to obtain a multimillion-dollar contract for which he was not qualified. White allegedly gave a report from an independent accounting company that does not exist. White also allegedly provided as reference the owner of a $9 million contracting project. However, both the owner and prior project seem to have been created out of thin air. According to the alleged, Raymond White’s true specialty is the construction of fantastical lies.”
William W. Richards, Special Agent in Charge, Office of Procurement Fraud Investigations, stated: “The Office Procurement Fraud Investigations will work tirelessly with our law enforcement partners and prosecutorial partners to combat fraud threatening the Department of the Air Force.”
According to the Complaint, which was not sealed today in Manhattan federal Court[1]:
WHITE, the president and chief executive of a construction management company and general contractor company (the “Contractor”) submitted a bid to DCARNG for a contract (the “Contract”) to build a munitions loader training facility at Joint Base Andrews in Maryland. This was between May 12, 2019 and September 30, 2020. In response to a preaward questionnaire, WHITE sent several documents to the DCARNG contract specialist. These included an “Independent Accountants’ Report,” “Construction Contractor Experience data” and a “Firm Dossier”. The Contractor was awarded the contract for $4,801,000 from September 21 to 30, 2019. These documents contained false financial information about the Contractor’s finances, false information about past performance of contracts by Contractors, and false information about the Contractor’s management team. The contract was terminated for false information to DCARNG. No construction work had been completed on the site as of September 16, 2020.
WHITE was required by federal law to obtain performance and payment guarantees from an insurer (generally referred in the business as a “surety”) for the Contract. The Contractor received a performance-and-payment bond from a bond insurer (the “Surety”) on October 23, 2019. The Surety also required that the Contractor obtain a guarantee from the United States Small Business Administration (“SBA”) in order to be reimbursed 80%-90% for any loss incurred. WHITE sent the SBA bond guarantee application materials to a surety broker in October 2019. The application materials contained financial statements and a statement about WHITE’s personal history. These documents contained false financial information about the Contractor’s finances as well as false information regarding past contracts. WHITE also falsely claimed in the Statement of Personal History he had never been convicted of any criminal offense. However, WHITE was previously convicted in the Southern District of New York of mail-fraud (18 USC). 1341), major fraud against America (18 USC). 1031), false statements (18 USC? 1001(a), false statements (18 USC? 1512(b),(3). WHITE also listed his name under “Raymond Alexander White” and gave a social security number, and date of birth that were different from those in his Bureau of Prisons records. The Contractor received a guarantee from SBA for 80% of the payment and performance bond on or around October 31, 2019. The SBA has fulfilled three claims submitted by the Surety to the SBA pursuant the guarantee provided to the bonds issued to the Surety by the SBA. They total $242,827.53 as at January 26, 2021.
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WHITE, 56, is charged with one count each of major fraud against the United States and two counts of wirefraud. Each of these counts carries a maximum term of 20 years in prison.
The maximum sentences in this case were set by Congress. They are only informational and will not be used to determine the sentencing of any defendant.
Ms. Strauss was highly appreciative of the Air Force Office of Procurement Fraud Investigations’ and the Army Major Procurement Fraud Unit’s efforts in this investigation.
The Office’s General Crimes Unit is handling the case. The prosecution is being handled by Edward C. Robinson Jr., Assistant United States Attorney.
The Complaint contains only accusations. The defendant is presumed innocent until proven guilty.

[1] The introductory phrase indicates that the entire text of the Complaint and the description of it set forth herein are only allegations. Every fact described herein should therefore be considered an allegation regarding the defendants named in the Complaint.

More dWeb.News Crime and Punishment at https://dweb.news/category/crime-and-punishment/

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