Matthew C. McPherson, Wire Fraud Conspiracy, KS 2024

KANSAS CITY, MO – A brazen scheme to siphon over $335 million in federal contracts intended for service-disabled veterans and certified minority businesses has landed 43-year-old Matthew C. McPherson of Olathe, Kansas, in the crosshairs of the Department of Justice. McPherson pleaded guilty today to one count of conspiracy to commit wire fraud and major program fraud, admitting his central role in a decade-long deception.

According to court documents, McPherson, owner of Topeka, Kan.-based Business C, colluded with others to control Zieson Construction Company, falsely presenting it as a legitimate small business owned and operated by Stephon Ziegler, an African-American service-disabled veteran. While Ziegler was listed as the owner, McPherson and his co-conspirators were the true power brokers, raking in the profits. From September 2009 to March 2018, Zieson secured approximately 199 federal contracts—worth a staggering $335 million—through this fraudulent setup. McPherson’s share, funneled through his business entities, totaled a cool $4,183,920, gained through false invoices.

But the greed didn’t stop there. When Zieson outgrew its “small business” eligibility in 2014, McPherson and his crew doubled down on the deception. They created Simcon Corp, leveraging the minority status of another employee to qualify for further set-aside contracts in Missouri. Simcon, also under McPherson’s control, landed a $4,423,638 contract with the U.S. Air Force and a $6,911,404 contract with the U.S. Army in 2016. Both Zieson and Simcon operated out of the same building, shared resources, and even faked subcontracting agreements to bolster Simcon’s fabricated qualifications. McPherson pocketed another $319,866 from Simcon via fraudulent invoicing.

The scheme involved a layered network of deceit. McPherson also used Business C to submit bogus invoices to Zieson, masking the flow of illicit profits. The total fraud proceeds linked to Business C amount to a hefty $5,516,786, all of which McPherson is now obligated to forfeit to the government. Ziegler, the nominal owner of Zieson, previously pleaded guilty in 2019 to making false statements to the Department of Veteran Affairs, indicating a wider web of complicity.

Prosecutors are seeking a maximum sentence of five years in federal prison without parole for McPherson, a punishment that reflects the scale and audacity of this long-running fraud. This case highlights a persistent vulnerability in the federal contracting system—the exploitation of programs designed to support deserving veterans and minority entrepreneurs. The Grimy Times will continue to follow this case and expose similar schemes that prey on the integrity of public funds.

The investigation was conducted by federal agencies and is a stark reminder that those who attempt to defraud the government will be held accountable. McPherson’s guilty plea is a small victory, but the damage done to legitimate businesses and the erosion of trust in the contracting process are significant. The full extent of the co-conspirators involved remains under investigation.