Baytown Man Sentenced in Barge Repair Kick-Back Scheme
BEAUMONT, Texas – A 43-year-old Baytown, Texas, man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Andres “Andy” Degollado pleaded guilty on Apr. 17, 2018 to wire fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Marcia A. Crone. Degollado was also ordered to pay restitution in the amount of $70,000.
According to information presented in court, Degollado served as the Operations Manager for Sienna Shipyards, L.L.C., an inland barge repair facility located on the Sabine River in Orange County, Texas. Degollado was a salaried employee responsible for coordinating the work of employees, contractors, and sub-contractors to perform various aspects of barge repair work. From January to November, 2014, Degollado, while working as Operations Manager for Sienna, devised and carried out a kick-back scheme to defraud his employer by having a contractor bill or invoice Sienna for barge cleaning work when no such work was ever performed. According to company records, Sienna paid fraudulent invoices totaling about $192,250.00 for work that was not performed. As a result, Degollado received kick-backs from the contractor.
This case was investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Christopher T. Tortorice.