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Four Individuals Charged with Fraudulently Obtaining Government Contracts
HARRISBURG, Pennsylvania – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Scott E. Boone, age 51, of Enola, PA, Daniel E. McGuire, age 60, of Landisville, PA, Thomas E. Lauer, age 60, of Butler, PA, and Rebecca J. Davis, age 73, of Bethel Park, PA, were indicted yesterday by a federal grand jury on six counts of violating the Major Fraud Act and two counts of conspiracy to defraud the United States and to commit violations of the Major Fraud Act.
According to United States Attorney Gerard M. Karam, the indictment alleges that between 2003 and 2014, all four defendants conspired to obtain and did obtain federal government contracts reserved for companies run by socially and economically disadvantaged individuals through the U.S. Small Business Administration’s 8(a) Business Development Program.
The indictment alleges that Rebecca J. Davis was the president of a company called Elstner Construction Company. Davis and her company were admitted to the SBA’s 8(a) Program in 2001. Starting around 2007, she and the other defendants allegedly began conspiring to get construction contracts at Letterkenny Army Depot, a facility under the command structure of the U.S. Army Aviation and Missile Command, that were set aside for 8(a) Program participants.
The indictment alleges that Davis and the other defendants moved actual laborers who were on site at Letterkenny Army Depot onto the Elstner Construction payroll in order to make it appear falsely that Elstner Construction was meeting the 15% self-performance requirement.
The indictment alleges that the four defendants together obtained approximately $85 million in construction contracts at Letterkenny Army Depot through fraudulent means. In addition, three defendants—Boone, McGuire, and Lauer—were indicted for conspiring to obtain and obtaining a contract at the VA Medical Center in Salem, Virginia worth approximately $5.3 million through fraudulent means.
Defendant: Scott E. Boone
Criminal Charges: Six counts of violating the Major Fraud Act and two counts of conspiracy to defraud the United States and to commit violations of the Major Fraud Act
City and State: Enola, PA
Date: Not specified
Sentence or Outcome: Currently pending
Dollar Amounts: $85 million in construction contracts and $5.3 million in VA Medical Center contract
Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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