Florida residents Brian J. Garrahan and Kelly A. Spillman have been ordered to pay over $4 million in restitution for their role in a conspiracy to defraud federal agencies and contractors.
According to court documents, Garrahan and Spillman, both of Delray Beach, Florida, conspired to obtain payments from government contractors for issuing fraudulent bonds to insure government contracts. The bonds were individual surety bonds that required collateral, which in this case was land or cash or cash equivalent assets held in bank accounts.
However, Garrahan and Spillman knew that the claims of ownership of land were false and the claims of possessing funds were false. Supporting documents related to these assets were also fraudulent.
Garrahan, 42, and Spillman, 35, previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 371. On September 16, 2016, U.S. District Judge Kenneth A. Marra sentenced Garrahan and Spillman.
Garrahan was sentenced to 30 months’ imprisonment, to be followed by two years of supervised release. He was also ordered to forfeit over $1 million. Spillman was sentenced to time served, to be followed by two years of supervised release, including twelve months of home detention. She was ordered to forfeit approximately $130,000.
Today, Judge Marra issued Amended Judgments as to Garrahan and Spillman, ordering them to pay $4,414,847.19 in restitution to fourteen federal agencies and two federal contracting companies. The federal agencies affected include the United States Army, the United States Department of Energy, the United States Environmental Protection Agency, and the United States Department of Veterans Affairs, among others.
According to court documents, Garrahan and Spillman conspired with others to issue fraudulent bonds to over 100 contractors and ten federal agencies, resulting in significant losses to the affected parties. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
The investigative efforts of EPA-OIG and the U.S. Department of Veterans Affairs-OIG, together with the Criminal Investigation Command of the U.S. Army, U.S. Department of Defense-OIG, Defense Criminal Investigative Services, U.S. Department of Energy-OIG, and U.S. General Services Administration-OIG, are commended in this case.
Related Federal Cases
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- Ruben Mangual-Aquino, Conspiracy to Traffic in Counterfeit Access Devices, Florida 2023 · Florida
- Brian Robert Harling, Possession of Child Pornography, Florida 2014 · Florida
- Robert Anton Woodring, Mail Fraud and Conspiracy to Commit Mail Fraud, Florida 2015 · Florida
- Michael Szafranski, Conspiracy to Commit Wire Fraud, Florida 2009 · Florida
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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