United States Attorney Benjamin B. Wagner
Eastern District of California
Bakersfield Defense Contractor Arrested on Fraud Charges
|FOR IMMEDIATE RELEASE||
Tuesday, June 11, 2013
Docket #: 1:13-cr-00212-LJO-SKO
FRESNO, Calif. —Alejandro Villarreal, 31, of Bakersfield, was arrested today for a scheme to defraud the U.S. Department of Defense, United States Attorney Benjamin B. Wagner announced. On May 16, 2013, a federal grand jury returned an indictment against him, charging him with 28 counts of wire fraud.
According to the indictment, Villarreal was the President and Manager of Oliver Supplies. Over a period of two years, Villarreal substituted “similar” goods that were inferior or were not manufactured by government approved suppliers in approximately 16 contracts that were awarded to Oliver Supplies. He billed approximately $251,214 on these contracts, of which approximately $224,496 was actually paid by the Department of Defense.
This case is the product of an investigation by the Defense Criminal Investigative Agency. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
If convicted, Villarreal faces a maximum penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.