URBANA, Ill. – A staggering $2.2 million swindle has come to light in the once-thriving city of Kankakee, where a high-ranking wastewater official, Richard G. Simms, has pleaded guilty to defrauding the Kankakee River Metropolitan Agency (KRMA) and the city’s Environmental Service Utility (ESU) of an astonishing sum of money.
Sentencing for Simms, 73, currently of Marietta, Ohio, is scheduled for June 28. The former executive director of KRMA submitted fraudulent and inflated invoices for payment to his engineering firm, Simms Engineering, LTD., for software development by Plum Flower International, a business he and his daughter started in 2014.
Although Simms did not have board approval or contracts with his engineering firm to develop software, he circumvented KRMA’s invoice payment procedure by submitting invoices directly to its accounting firm. KRMA’s superintendent and administrative assistant were unaware of the Simms Engineering invoices for software development.
The Federal Deposit Insurance Corporation Office of Inspector General conducted the investigation. Assistant U.S. Attorney Eugene L. Miller is representing the government in the case prosecution.
Simms admitted to receiving approximately $2.2 million in payments for software development by Plum Flower International from 2014 to 2018. The majority of the funds, more than 95%, were transferred to Plum Flower International, with most used by Simms and his daughter for their personal benefit.
As a result of his actions, Simms faces a maximum statutory penalty of 10 years in prison for federal program fraud. The offense carries a maximum penalty of up to 10 years in prison.
The case is a stark reminder of the importance of transparency and accountability in public office, and the devastating consequences that can result from abuse of power.
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Key Facts
- State: Illinois
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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