Leon Blackmon Sr., Million-Dollar Fraud Scheme, Tennessee 2024

Defendant Leon Blackmon Sr. and eight others have been charged for their roles in a massive $1.6 million government-contracting scheme that defrauded the City of Memphis and taxpayers.

Leon Blackmon Sr., 70, of Memphis, a former City of Memphis Division of Housing and Community Development employee, and the eight others were indicted for their participation in the scheme that caused the City to pay out at least $1.6 million to City vendors, with at least 50% of those funds resulting from fraud.

The indictment alleges that from 2009 to 2016, Leon Blackmon Sr. maintained the City-owned lots and properties list and selected vendors to maintain those lots under the City HCD Maintenance Program. He received, reviewed, approved vendor invoices for the HCD Maintenance Program, then submitted check requests to the City requesting that those vendors be paid.

As part of the scheme, Leon Blackmon Sr. and his relatives, including Leon Blackmon Jr. and Karl "Shun" Blackmon, recruited family, friends, and associates to establish lawn companies and become City vendors. The Blackmons directed these individuals to obtain business tax licenses, apply for and obtain U.S. Post Office Boxes, and open business bank accounts. Some of the City-owned lots and properties were already maintained by City employees or neighboring property owners. However, vendors still submitted fraudulent invoices to Leon Blackmon Sr. for alleged work conducted.

Leon Blackmon Sr. and the eight others are charged with conspiracy to commit mail fraud and multiple individual mail fraud charges. They face individual sentences of up to five years imprisonment for the conspiracy offense and up to twenty years for the mail fraud offense. Leon Blackmon Sr. also faces up to five years imprisonment for false statements to federal agents.

U.S. Attorney D. Michael Dunavant said, "This long-term fraudulent scheme had significant financial consequences to the public interests of the City of Memphis, and created unfair business advantages for vendors in the HCD Maintenance Program. This office is committed to the protection of the integrity of public services, and schemes to defraud programs or compromise public office will not be tolerated."

The indictment demonstrates the office’s commitment to protecting the public interest and preventing government-contracting schemes.

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