Kay F. Gow, Conspiracy to Defraud, Florida 2019

A 68-year-old Naples woman has been sentenced to 10 years in federal prison for her role in a conspiracy to defraud Lee County out of $5 million in grant funds.

Kay F. Gow, of Naples, was sentenced by U.S. District Judge John E. Steele on charges of conspiracy to commit wire fraud, wire fraud, and money laundering.

Gow and her co-conspirators were found guilty by a federal jury on February 22, 2019. Her husband, Robert Gow, is deceased.

The scheme involved the use of false and fraudulent representations to various individuals and government entities about the financial success of HerbalScience Group, LLC and HerbalScience Singapore Pte, Ltd. The Gows formed VR Laboratories, LLC in 2010 to apply for a $5 million grant through the Lee County Financial Incentives for Recruiting Strategic Targets ("FIRST") program.

The FIRST program consisted of taxpayer funds that had been set aside by the county to bring economic development projects to the Ft. Myers area. In seeking the FIRST grant, the Gows made numerous false and fraudulent representations about the financial success and potential of VR Labs, including that it was poised to become a leading global formulator and manufacturer of botanical pharmaceuticals.

Ultimately, Lee County awarded VR Labs $5 million in FIRST grant funds to build a manufacturing facility that the Gows had claimed would bring hundreds of high-paying jobs and economic growth to Lee County. However, the manufacturing facility was never completed or operational.

The Gows used the grant funds to defraud additional private investors, with one investor losing his retirement savings of $500,000.

Gow's co-conspirator, John G. Williams, Jr. (67, Suffolk, VA), was sentenced to 30 months in federal prison.

The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke, Michael Leeman, and Josephine W. Thomas.

Source: https://www.justice.gov/usao-mdfl/pr/grant-recipients-sentenced-5-million-fraud-lee-county