A Chico man has been sentenced to 33 months in prison for his role in a recruiting fraud scheme that targeted the California National Guard. Steel A. Davis, 45, was sentenced by United States District Judge Troy L. Nunley on Tuesday, March 2021, for a scheme to obtain bonuses for referring individuals to enlist in the California National Guard, U.S. Attorney McGregor W. Scott announced.
On January 29, 2018, a federal jury found Davis guilty of eight counts of wire fraud. The scheme involved Davis giving recruits’ information to his co-conspirators, who would then file false claims with DOCUPAK that they had referred the recruits to join the Guard when, in fact, the recruits had joined on their own initiative. When the compensation was received, Davis split the proceeds of the fraud with the Recruiting Assistants.
The scheme was uncovered as part of a multi-agency investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation that began in 2012. In total, 10 former soldiers across the Fresno and Sacramento divisions of the Eastern District of California were convicted of criminal charges for abusing the GRAP program. Separate from the criminal cases, other soldiers agreed to repay bonuses as part of civil settlements with the United States.
This case was the product of an investigation by the Army Criminal Investigation Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Matthew G. Morris and Katherine T. Lydon prosecuted the Sacramento cases, and Assistant United States Attorney Michael G. Tierney and Trial Attorneys Alexis J. Loeb and Jacklin Chou Lem prosecuted the Fresno cases. Assistant United States Attorney Vincente Tennerelli represented the United States in civil recovery efforts.
According to court documents and evidence presented at trial, the United States Army contracted with a company called Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive a $1,000 payment when a person enlisted and a second $1,000 payment when the recruit left for boot camp.
Davis was a recruiter with the California National Guard and was ineligible to participate in the G-RAP program. However, realizing the potential to make money through G-RAP, Davis gave recruits’ information to his co-conspirators who had signed up to be Recruiting Assistants.
Defendant: Steel A. Davis
Criminal Charges: Eight counts of wire fraud
City and State: Chico, California
Exact Date: January 29, 2018
Sentence: 33 months in prison
$1,000 payment per enlistment and $1,000 payment per boot camp
Case No: 1:14-cr-109-LJO
Key Facts
- State: California
- Category: Public Corruption|White Collar Crime
- Source: DOJ Press Release â†â€â€
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