ALBUQUERQUE, New Mexico – A Shiprock man pleaded guilty in federal court to orchestrating a bid-rigging and money laundering scheme that defrauded a federally-funded Native American educational institution of approximately $1.5 million over a three-year period.
According to publicly available court documents, William Badoni, 61, admitted to conspiring with his co-defendant, Elroy Harry, an employee of Kinteel Residential Campus, Inc. (KRCI) from April 2018 to June 2019 to obtain non-public information about construction projects and the bidding process. This information was used to give Badoni‘s company an unfair advantage in winning KRCI contracts.
Badoni also arranged for the submission of falsified bids from other companies to circumvent KRCI’s contracting policies.
The contracts and related change orders resulted in revenue of approximately $1.5 million paid to Badoni‘s company by KRCI between 2016 and 2019.
In exchange for this assistance, Badoni paid Harry approximately $50,000. These payments were made in cash and by check, using funds derived largely from the fraudulently obtained contracts.
Additionally, Badoni admitted to conducting financial transactions to conceal the proceeds of the illegal scheme. This involved depositing portions of contract payments into bank accounts while taking other portions in cash to avoid creating records of payments made with fraudulently obtained funds.
Harry pleaded guilty to conspiracy to commit federal program fraud and remains on conditions of release pending sentencing, which is currently scheduled for August 7, 2024. Badoni remains on conditions of release pending sentencing, which has not been scheduled. At sentencing, Badoni faces up to twenty years in prison and a fine up to $500,000 or twice the pecuniary gain resulting from the fraud. Upon his release from prison, Badoni will be subject to up to three years of supervised release.
The investigation was led by the U.S. Department of the Interior, Office of Inspector General and IRS Criminal Investigation. Assistant United States Attorneys Taylor F. Hartstein and Mark Probasco are prosecuting the case.
Residents of Shiprock, New Mexico, may have a reason to be concerned as a former resident has been charged with orchestrating a bid-rigging and money laundering scheme. The scheme, which ran from 2016 to 2019, defrauded a federally-funded Native American educational institution of $1.5 million.
Badoni’s scheme involved obtaining non-public information about construction projects to give his company an unfair advantage in winning contracts. He also arranged for the submission of falsified bids to circumvent the educational institution’s contracting policies. Badoni paid his co-conspirator, Elroy Harry, approximately $50,000 in exchange for his assistance.
Badoni faces up to twenty years in prison and a fine of up to $500,000 upon sentencing. He will also be subject to up to three years of supervised release after his release from prison.
The case is a reminder that bid-rigging and money laundering schemes can have serious consequences for those involved. It is essential for individuals and organizations to report any suspicious activity to the authorities to prevent such schemes from occurring.
Residents of Shiprock, New Mexico, may have a reason to be concerned as a former resident has been charged with orchestrating a bid-rigging and money laundering scheme. The scheme, which ran from 2016 to 2019, defrauded a federally-funded Native American educational institution of $1.5 million.
Badoni’s scheme involved obtaining non-public information about construction projects to give his company an unfair advantage in winning contracts. He also arranged for the submission of falsified bids to circumvent the educational institution’s contracting policies. Badoni paid his co-conspirator, Elroy Harry, approximately $50,000 in exchange for his assistance.
Badoni faces up to twenty years in prison and a fine of up to $500,000 upon sentencing. He will also be subject to up to three years of supervised release after his release from prison.
The case is a reminder that bid-rigging and money laundering schemes can have serious consequences for those involved. It is essential for individuals and organizations to report any suspicious activity to the authorities to prevent such schemes from occurring.
Related Federal Cases
- William Badoni, Bid-Rigging, New Mexico 2023 · Texas
- Vladimir Valentinovich Chevtayev, Conspiracy to Commit Money Laundering, Minnesota 2020 · Kansas
- Berg Companies Inc, Bid-Rigging Scheme, Washington 2023 · Massachusetts
- Stuart Hankin, Bid Rigging, Florida 2024 · New York
- Zayra Olivia Alvarado, Theft of Public Money, New Mexico 2020 · New York
Key Facts
- State: New Mexico
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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