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Jarod Machinga, Kickback Scheme, New Jersey 2023

A former Department of Veterans Affairs employee has been sentenced to 46 months in prison for his role in a kickback scheme that netted him over $1.2 million.

Jarod Machinga, 45, of Hopewell, New Jersey, previously pleaded guilty to honest services wire fraud, wire fraud, and engaging in a monetary transaction in criminally derived property.

According to court documents, Machinga, who worked as a supervisory engineer at the VA’s campus in East Orange, New Jersey, accepted kickbacks in exchange for directing more than $6 million worth of VA construction projects to companies with which he had relationships.

Machinga admitted to accepting $1,277,205 in kickbacks between 2007 and July 2012, and also falsely represented to the VA that one of the companies was owned by a service-disabled veteran when it was not.

As a result of Machinga’s scheme, one of the companies was awarded a contract worth over $3 million, which was paid by the VA.

In addition to the prison term, U.S. District Judge Mary L. Cooper sentenced Machinga to serve one year of supervised release.

U.S. Attorney Paul J. Fishman credited the Department of Veterans Affairs Office of Inspector General, the FBI, and IRS-Criminal Investigation with the investigation leading to today’s sentencing.

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