Fredericksburg Man Pleads Guilty to Fraudulently Obtaining Government Contracts
RICHMOND, Va. - John Patton Straiton, IV, 66 of Fredericksburg, Va., pleaded guilty today to making false claims and theft of government property relating to the Department of Defense (DOD).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Sharon Woods, Director of the Defense Criminal Investigative Service (DCIS), made the announcement after the plea was accepted by United States Magistrate Judge Dennis W. Dohnal.
John Straiton was charged in a criminal information on December 15, 2009 on charges of presenting false claims to the Defense Finance Accounting Service (DFAS) and theft of government property. Sentencing has been set for June 9, 2010, before United States District Judge Richard L. Williams. Straiton faces a maximum penalty of 5 years of imprisonment on the false claim charge, and a maximum penalty of 10 years of imprisonment on the theft of government property charge.
Documents filed with the Court show that in 1987, Straiton was debarred from government contracting by the Defense Logistics Agency for a period of ten years. Thereafter, to conceal from the government his true identity and his prior disbarment, Straiton used various false names and aliases, including John M. Clarke, Charles McCord and Charles Simpson, to register with the CCR. Operating under these false names, Straiton owned and operated Trevin McGregor Group, Inc. (L.B. Technologies) and A.B. Wolfe, Inc.
Beginning in 2003, Straiton, operating under the false names and aliases, used his companies, L.B. Technologies and A.B. Wolfe, Inc., to seek DOD contracts. He was awarded 16 DOD contracts for the manufacture of military equipment. Straiton would electronically notify the DOD upon completion of the manufacture of the items included in the 16 DOD contracts, which would under the United States Fastpay program, automatically trigger electronic payment to him. Straiton ultimately received 27 individual payments on the 16 contracts with a value in excess of $394,000.
The case was investigated by the Richmond Field Office of the Defense Criminal Investigative Service. Assistant United States Attorney N. George Metcalf is prosecuting the case on behalf of the United States. A copy of this press release may be found on the
website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.