Virginia Contractor Charged in Maryland Wire Fraud Scheme
A federal criminal complaint has been filed in Maryland charging Arthur Morgan, 67, of Lorton, Virginia, with a federal wire fraud charge in connection with federal contracts to provide helmets, body armor, and other goods to military and other federal entities.
The criminal complaint was filed on December 16, 2019, and was unsealed at Morgan’s initial appearance following his arrest on December 17, 2019.
At a detention hearing yesterday in U.S. District Court in Greenbelt, U.S. Magistrate Judge Gina L. Simms ordered that Morgan be released to a third-party custodian on home confinement, with a special condition that he pay a $75,000 bond.
The criminal complaint alleges that Morgan falsely certified that the ballistic vests, helmets, riot gear, and other items he offered for sale were from designated countries, specifically, Hong Kong and the United States. The affidavit alleges that Morgan knew that the items were manufactured and purchased from China.
From September 2015 to July 2019, the U.S. Navy and U.S. Department of State were two of at least five federal agencies that placed a total of nine orders with SEG for ballistic vests, helmets, or riot gear, valued at approximately $639,921.11.
If convicted, Morgan faces a maximum sentence of 20 years in federal prison for wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual is presumed innocent until proven guilty in a court of law.
Key Facts
- State: Maryland
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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