Ronald D. Armstrong, Honest Services Wire Fraud and Wire Fraud, Kentucky 2016

Fulton County Detention Center Kickback Scheme Exposed

Ronald D. Armstrong, a 60-year-old Dresden, Tennessee, business owner, has pleaded guilty to his role in a conspiracy to defraud Fulton County citizens through kickbacks and concealment of costs associated with the 2015 Fulton County Detention Center expansion.

Armstrong, the owner of Armstrong Construction, was awarded a $210,000 general contractor contract by the Fulton County Fiscal Court as part of the project. However, the contract was influenced by then-Fulton County Jailer Ricky D. Parnell, who was paid $100,000 in kickbacks by Armstrong.

According to the plea agreement, Armstrong paid Parnell $80,000 in cash as part of the kickback scheme. The scheme involved Armstrong’s contractor fees being paid by Fulton County, which were then used to trigger interstate wire transfers.

Armstrong and Parnell both profited from the arrangement, which was concealed from the Fulton County Fiscal Court and its citizens. Armstrong could face up to 80 years in prison, a $1,000,000 fine, and three years of supervised release if convicted.

The case is being prosecuted by Assistant United States Attorney Nute Bonner and investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).

A grand jury indictment was issued on November 15, 2016, charging Armstrong and four co-defendants, including Ricky D. Parnell, Michael Homra, Jimmy Boyd, and Daniel C. Larcom, with various charges related to the kickback scheme.

Armstrong’s company, Armstrong Construction, has been doing business with Fulton County for approximately twenty years, and the company has performed contracting work for the county on several occasions.

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