Related Federal Cases
- Arts & Crafts Fraud: Medicare Hit for $200K · Pennsylvania
- Finger-Painting Fraud: $200K Medicare Rip · Pennsylvania
- Art Fraud: $200K Medicare Scam · Pennsylvania
- Artful Dodge: Medicare Fraud Case Closed · Pennsylvania
- Philadelphia Man Faces 20-Year Sentence for Bank Heist · Pennsylvania
Philadelphia Consultant Faces Fraud Charges
Gregory Naylor, 66, a political consultant from Philadelphia, has pleaded guilty to making false statements to federal agents and misprision of a felony in connection with his role in attempting to conceal two campaign finance-related fraud schemes.
Naylor’s participation in the schemes, which were initiated by a long-time friend and former employer identified as Elected Official A, resulted in the theft of federal grant funds and private charitable funds that were used to repay an illegal campaign debt incurred by Elected Official A during a 2007 campaign for elected office.
According to court documents, Naylor helped conceal the source of funds used in Elected Official A’s campaign by preparing a false invoice for services rendered by his consulting firm. Naylor subsequently learned that Elected Official A and others orchestrated the theft of federal grant funds to repay the outstanding balance of the campaign debt, and he agreed to the falsification of campaign finance reports to further conceal Elected Official A’s activities.
In the second scheme, Naylor conspired with Elected Official A to pay down portions of the college debt of Elected Official A’s son using federal and local campaign funds. Naylor made approximately $22,000 in improper payments between August 2007 and April 2011 at Elected Official A’s request. He also falsely claimed on IRS forms that the payments made towards the college debt were earned income to Elected Official A’s son for services rendered as an independent contractor to Naylor’s consulting firm.
When confronted by federal agents in investigative interviews about the payments, Naylor lied on two occasions and repeated his cover story that the son of Elected Official A was an independent contractor working for his political consulting firm. The case was investigated by the FBI and the IRS-CI with assistance provided by the NASA Office of the Inspector General.
Naylor’s sentencing is scheduled for December 2, 2014. The case is being prosecuted by Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.
A statement from the U.S. Attorney’s Office said, ‘This case highlights the importance of holding public officials and their associates accountable for their actions. We will continue to work tirelessly to protect the public trust and ensure that those who break the law are brought to justice.’
RELATED: Jury Convicts Leaford Cameron in Nationwide Law Fraud Scheme
Key Facts
- State: Pennsylvania
- Category: White Collar Crime|Public Corruption|Fraud & Financial Crimes
- Source: DOJ Press Release ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News