David R. Dodd, II, Federal Funds Misappropriation, Money Laundering, Pennsylvania 2011

A local businessman has been brought to justice for his role in a massive scheme to misappropriate federal funds and launder money. David R. Dodd, II, a 45-year-old resident of Mechanicsburg, Pennsylvania, was sentenced to 87 months in prison for his crimes.

Dodd’s scheme involved the misappropriation of over one million dollars in federal funds, which he concealed by placing them in a brokerage account. He also used a business he owned, Industrial Design and Construction, Inc. (IDC), to purchase pre-cast concrete forms for the Capital View Commerce Center (CVCC) project. However, Dodd concealed his personal interest in IDC, violating federal conflict of interest requirements, and wrongfully obtained the funds from HUD through programs administered by the City of Harrisburg and Dauphin County.

As part of the scheme, Dodd was also paid $860,454 in HUD funds to pay contractors who performed and completed work on the CVCC project. However, he kept the money for himself and did not pay the contractors as he was obligated to do. The total amount of restitution awarded to the victims is approximately $21 million.

The victims of Dodd’s scheme include several contractors who performed work on the CVCC project, including H&R Mechanical, Weaver Glass, Stone Fire Protection, and Stewart-Amos Steel. The City of Harrisburg and Dauphin County were also victimized, with the city losing $3,512,777.70 and Dauphin County losing $2,752,450.64.

As part of his plea agreement, Dodd agreed to forfeit $1,151,037 seized from Wells Fargo brokerage accounts, a 2008 BMW X5 vehicle, a 2008 Mercedes Benz, and $58,041 in cash.

The joint investigation was conducted by the HUD’s Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation, and the Dauphin County District Attorney’s Office. The case was prosecuted by Assistant United States Attorney William A. Behe.

David R. Dodd, II, was sentenced on November 2011 in the Senior U.S. District Court in the Middle District of Pennsylvania. His crimes reflect far more than bad judgment, as Assistant U.S. Attorney William A. Behe told the court. The conduct contained false statements, hidden conflicts of interest, and repeated deceptive acts. The court agreed to the government’s request that Dodd be taken into custody by U.S. Marshals immediately after the sentencing.

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