HOUSTON – A 55-year-old Pearland resident has been convicted of defrauding the VA in a case that involves millions of dollars in contracts. Henry Guillory, who was born in 1963, pleaded guilty to conspiracy to commit wire fraud on Monday, April 23, 2018, in a case that has left many veterans feeling betrayed.
According to records, Guillory recruited a service disabled veteran to falsely claim majority ownership of a Houston-based company named MEP Sales and Service (MEP). While Guillory, the true majority owner, claimed minority ownership. This was done so as to get MEP certified as a Service Disabled Veteran Owned Small Business (SDVOSB) thereby providing MEP the ability to be awarded contracts.
The VA awards contracts to qualified companies that disabled veterans own as part of the Service Disabled Veteran Owned Small Business (SDVOSB) program. However, in this case, Guillory’s scheme allowed MEP to win 12 VA small business set-aside contracts totaling more than $1.6 million. These contracts were for maintenance and/or construction work at the DeBakey VA Medical Center.
Guillory’s scheme has been described as a ‘betrayal’ by many veterans who feel that legitimate veteran-owned small businesses were denied the opportunity to win these contracts. The VA – Office of Inspector General conducted the investigation and Assistant U.S. Attorney Daniel C. Rodriguez is prosecuting the case.
U.S. District Judge Alfred H. Bennett accepted the plea and set sentencing for July 12, 2018, at which time Guillory faces up to five years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The case is a stark reminder that the VA’s programs are not immune to corruption and that those who seek to defraud the system will be held accountable. The Grimy Times will continue to follow this case and provide updates as more information becomes available.
Related Federal Cases
- Shannon Tecoko Mays, Conspiracy to Commit Wire Fraud, Texas, 2012 · Texas
- Terrence Miles, Conspiracy to Commit Robbery, IA, 2023 · Nebraska
- Mark C. Simpson, Child Support Fraud and Drug Conspiracy, Atlanta G… · Illinois
- Albert Davis, Wire Fraud, Kansas City, MO, 2023 · Missouri
- Ira Thomas, Conspiracy to Commit Federal Bribery and Honest Service… · Texas
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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