Patrick Michael Dingle, Contract Fraud, Missouri 2018

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Federal Court Finds Parkville Man Guilty of $335 Million Fraud Scheme

A Parkville, Missouri, man, Patrick Michael Dingle, 50, has pleaded guilty to his role in a $335 million scheme to defraud federal programs that award contracts to firms owned by minorities, veterans, and service-disabled veterans. Dingle, who was the operations manager for Zieson Construction Company, admitted to conspiring with Matthew C. McPherson, 45, of Olathe, Kansas, to fraudulently obtain contracts set aside by the federal government.

The scheme involved Dingle and his co-conspirators controlling and operating Zieson, which was originally formed in 2009 with Stephon Ziegler – an African-American service-disabled veteran – as the nominal owner. However, Ziegler did not control the day-to-day operations or the long-term decision making of Zieson, and instead served as a courier of checks and invoices when requested to do so.

Dingle and McPherson submitted false and fraudulent Past Performance Questionnaires in support of Zieson bids for set-aside contracts, which resulted in the government paying Zieson approximately $335 million for 199 federal contracts set aside for award to minority-owned small businesses and veteran-owned small businesses between 2009 and 2018. Several of the set-aside contracts awarded to Zieson were valued in excess of $1 million, including a contract at Topeka, Kan., awarded on July 13, 2012, valued at approximately $4,125,800.

Dingle also pleaded guilty to filing a false tax return, admitting that he claimed $799,425 in fraudulent business expenses on his tax return for 2016. As a result, the government suffered a loss of approximately $349,784, with a total loss of $615,847 over a four-year period from 2013 to 2016.

Under federal statutes, Dingle is subject to a sentence of up to eight years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.

A sentencing hearing has been scheduled for Patrick Michael Dingle, who is currently being held in federal custody. The case is a significant blow to those involved in federal contract fraud and serves as a reminder of the importance of accountability in government contracting.

McPherson, who pleaded guilty on June 3, 2019, to one count of conspiracy to commit wire fraud and major program fraud, awaits sentencing for his role in the scheme.