Grimy Times Investigates
A shocking case of corporate greed and deception has come to light in Virginia, as Cornerstone Facility Solutions, LLC, a maintenance and repair service based in Brick, New Jersey, and its CEO, Paul Galgon III, have been found guilty of defrauding the U.S. Postal Service (USPS).
Cornerstone entered into a service agreement to perform repairs on USPS facilities. However, the company and Galgon, who directed the scheme, falsified invoices and inflated the cost of services provided to the USPS. They claimed their employees performed the work, but in reality, the work was subcontracted out to other companies.
The scam allowed Cornerstone to build in an improper 30-percent markup on the subcontractor’s costs, resulting in overcharges of $158,380 to the USPS from July 2016 to July 2021.
As a result of the scheme, Cornerstone and Galgon have been ordered to pay $316,779 to resolve their False Claims Act liability.
Galgon also pleaded guilty to one count of criminal wire fraud, and was sentenced to three years of probation and a $5,000 fine. The civil case was handled by Assistant U.S. Attorney William Hochul III, while the criminal case was prosecuted by Assistant U.S. Attorneys Russell L. Carlberg and Kristin S. Starr.
The case is a stark reminder of the importance of accountability and transparency in business dealings. It is a testament to the vigilance of law enforcement agencies, including the USPS Office of Inspector General, and their commitment to protecting the public interest.
Cornerstone Facility Solutions, LLC and Paul Galgon III have been held accountable for their actions, and the public can rest assured that justice has been served.
Defendant:
Cornerstone Facility Solutions, LLC (legal entity)
Paul Galgon III (individual)
Criminal Charge:
One count of criminal wire fraud
City and State:
Alexandria, Virginia
Date:
July 2016 to July 2021 (crime date)
Sentence or Outcome:
Paul Galgon III: three years of probation, $5,000 fine
Cornerstone Facility Solutions, LLC: $316,779 fine
Dollar Amounts:
$158,380 overcharged to USPS
$316,779 fine paid by Cornerstone and Galgon
$5,000 fine paid by Galgon
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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