A Midlothian man has been found guilty of embezzling $4 million from the Virginia Department of Health.
Adam Lamar Harrell, 41, pleaded guilty yesterday to mail fraud, federal program theft, and tax evasion in connection with a scheme to misappropriate millions of dollars from the Virginia Department of Health (VDH).
According to court documents, Harrell used his position as Associate Director of the Office of Emergency Medical Services (OEMS) to direct payments from VDH to a company he registered and controlled, Strategic Tech Innovations, LLC.
Harrell concealed his ownership of and affiliation with Strategic Tech from VDH and OEMS, and used this entity to embezzle funds from his employer through two separate means.
From January 2021 through May 2023, Harrell created 15 fraudulent invoices for services and technology that Strategic Tech would purportedly provide to OEMS. Harrell set exorbitant and non-market prices for the various line items on the invoices, knowing the vast majority of those items would not be provided by Strategic Tech.
Harrell deposited each of the checks he illegally received from the Western Virginia EMS Council (WVEMS) into the Strategic Tech checking account he controlled and used the funds for personal expenses, including the purchase of real estate, luxury vehicles, dozens of firearms, and jewelry. In total, Harrell received $4,337,395 in OEMS funds.
On March 9, 2021, Harrell filed a joint federal income tax return with his spouse for tax year 2020. On the IRS Form Schedule C, Profit or Loss from Business, Harrell reported being the sole proprietor of Strategic Tech, reporting $193,076 in gross receipts. He falsely reported expenses for Strategic Tech of $200,340, for a net loss of $7,264, fraudulently lowering his taxable income and generating a refund of $934. Harrell then ceased reporting any income from Strategic Tech on the federal income tax returns he filed for tax years 2021, 2022, and 2023.
Harrell is scheduled to be sentenced on Nov. 20. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Harrell is a Midlothian resident. The charges were announced by Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office.
The Virginia State Police and the Office of the State Inspector General provided significant assistance in the investigation of this case. Assistant U.S. Attorneys Thomas A. Garnett and Kashan Pathan are prosecuting the case.
Related Federal Cases
- Michael Paul Riebe, Wire Fraud and Mail Fraud, Virginia 2014 · Virginia
- Yumahnn Quashawn Brown, Conspiracy to Commit Bank and Mail Fraud, Aggravated Identity Theft, Virginia 2024 · Georgia
- Eyal Katz, Immigration Fraud and Money Laundering, Virginia 2024 · Virginia
- William E. Grobes, IV, Wire Fraud and Money Laundering, Virginia 2016 · Alabama
- Landry Mbendeke, Marriage Fraud, Virginia 2013 · Virginia
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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