Birmingham Water Works Board Hit by $255K Invoice Scam

BIRMINGHAM, AL – A brazen scheme to siphon funds from the Birmingham Water Works Board (BWWB) has landed two men in federal court. JERRY JONES, 55, of Maylene, and TERRY WILLIAMS, 54, of Mt. Vernon, were indicted today on charges of wire fraud and conspiracy to commit wire fraud, according to U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.

The 21-count indictment details a conspiracy stretching from December 2014 to January 2016. The pair allegedly fabricated invoices claiming work was performed on the Shades Mountain Filter Plant project that never happened. Jones, a Vice-President at engineering firm Arcadis, and Williams, owner of Mobile-based Global Systems International, LLC (GSI), colluded to submit these false claims to Arcadis, which then billed the BWWB. Arcadis had a contract with BWWB for design and bid phase services on the filter plant improvements.

The scam worked by exploiting the contractual agreement between Arcadis and the BWWB. Arcadis would submit monthly reports and invoices, including amounts owed to subcontractors like GSI. The BWWB was obligated to pay Arcadis the subcontractor costs plus a 10 percent premium. Jones and Williams allegedly created nine fraudulent GSI invoices detailing hours never worked, and Jones facilitated their payment through Arcadis. He then submitted invoices to the BWWB, including the false GSI amounts and the hefty 10 percent markup.

The result? The BWWB was fleeced out of $255,300.10, with GSI receiving $232,091.00 of the ill-gotten gains. The indictment further alleges that Williams shared the profits of the scheme with Jones, turning this into a calculated act of theft from Birmingham residents. “These defendants demonstrated a callous disregard for the citizens of Birmingham by stealing money meant to improve the Birmingham Water Works Board’s operations,” stated U.S. Attorney Town. “Their breach of the special trust given to them makes their thievery even more intolerable.”

The FBI spearheaded the investigation, with assistance from the Alabama Attorney General’s Office. Assistant United States Attorneys George Martin and Catherine Long are prosecuting the case. If convicted, Jones and Williams each face a maximum of five years in prison and a $250,000 fine on the conspiracy charge, and up to 20 years in prison and another $250,000 fine on the wire fraud charge. This isn’t just about money; it’s about a betrayal of public trust and a blatant disregard for the hardworking people of Birmingham.

Grimy Times will continue to follow this case as it moves through the federal court system. Expect more details as the evidence unfolds and the full scope of this alleged fraud is revealed. The investigation highlights the ongoing vulnerability of public works projects to fraudulent schemes and the importance of diligent oversight.