ALEXANDRIA, Va. – Andy Persaud, 40, of Ashburn, Va., was sentenced today to 24 months in prison, followed by three years of supervised release, for defrauding the Bank of Georgetown by obtaining a $1,000,000 line of credit on the basis of false documentation, and for obstructing justice by destroying and falsifying evidence in response to an investigative subpoena issued by the General Services Administration (GSA) Office of Inspector General. Persaud was also ordered to pay over $720,000.00 in restitution.
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.justice.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 https://pcl.uscourts.gov.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of FBI’s Washington Field Office, and Brian D. Miller, General Services Administration (GSA) Inspector General, made the announcement after sentencing by United States District Judge Claude M. Hilton
Persaud pleaded guilty on March 14, 2013. According to court documents, Persaud, who founded and owned PCI construction company, submitted fraudulent documents on multiple occasions to the Bank of Georgetown in order to obtain increased lines of credit and loans on that line of credit. Persaud went so far as to completely fabricate unpaid invoices related to PCI government contracts as collateral for the loans. In certain instances, moreover, PCI submitted government contract invoices to the Bank of Georgetown before PCI was actually awarded the contract. These false and fraudulent invoices, submitted at Persaud’s direction, caused the Bank of Georgetown to suffer more than $700,000 in actual losses.
In addition to his bank fraud, Persaud separately obstructed justice in connection with a GSA investigation into whether Persaud and PCI had violated the Federal False Claims Act in its government contracting practices. In response to an administrative subpoena, Persaud once again provided altered and fabricated documents—this time in attempt mislead government investigators. For example, Persaud instructed his employees to submit falsified job cost estimates and subcontractor proposals, and he personally added handwritten notes to some of the documents in an attempt to hide his unlawful government contracting practices that were the subject of the investigation. Despite knowing that the documents he submitted to the GSA were fabricated, Persaud falsely certified to the GSA that he and PCI had complied with the subpoena.
This case was investigated by GSA Office of Inspector General and the FBI’s Washington Field Office. Assistant United States Attorneys Charles Connolly and Chad I. Golder prosecuted the case on behalf of the United States.