Washington, DC – Michelle Cho, an officer at Far East Construction Corporation (Far East), has pleaded guilty to conspiring to commit wire fraud. The plea agreement, which includes $169,166 in forfeiture and a $35,000 criminal fine, was announced by various federal officials including Acting Assistant Attorney General Renata Hesse and U.S. Attorney Channing D. Phillips.
According to court documents, Cho used two straw companies, including Far East, to defraud the Small Business Administration (SBA) along with MCC Construction Company (MCC). Cho’s scheme allowed MCC to secure 27 government contracts worth over $70 million from 2008 to 2011, exploiting federal contract set-asides for small, disadvantaged businesses.
‘Michelle Cho knowingly participated in a long-standing scheme that manipulated federal contracts designated for small, disadvantaged businesses,’ said Acting Assistant Attorney General Hesse. ‘We will continue to work with our law enforcement partners to protect the integrity of the procurement system.’
U.S. Attorney Phillips emphasized the impact on legitimate small businesses: ‘Michelle Cho sought to unjustly enrich herself by participating in a fraudulent scheme that undermined a program to designate federal contracts for small disadvantaged businesses. This prosecution shows our determination to maintain the integrity of federal contracting programs so that benefits go only to deserving businesses.’
Assistant Director in Charge Abbate highlighted the FBI’s commitment to such fraud: ‘This conspiracy to deceive and defraud the federal government caused funds to be diverted illegally and cheated small businesses out of fair federal contracting opportunities. The FBI remains vigilant to such abuses of the system and will continue to work with our partners to bring to justice anyone who perpetrates fraud against the government.’
SBA Inspector General Gustafson expressed the agency’s dedication to justice: ‘Today’s guilty plea signifies our commitment to bringing individuals that conspire to fraudulently gain access to set-aside Federal contracting opportunities to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication to serving justice.’
Related Federal Cases
- McClure and Chambers Sentenced for $1.5M Contractor Fraud Scheme · Washington
- Maxime Maiga Sentenced for $400,000 Wire Fraud · Maryland
- Bolden Pleads Guilty to $30M Computer Fraud Scheme · Washington
- Emiel Kandi Pleads Guilty in $800K Mortgage Fraud Scheme · Washington
- Mark Spangler Sentenced to 16 Years for Wire Fraud and Investment Advisor Fraud · Washington
Key Facts
- State: Washington DC
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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