Man Sentenced for Defrauding Investors of Over $5 Million
ALEXANDRIA, Va. – A Florida man was sentenced today to four years in prison for defrauding investors in his company of more than $5 million.
According to court documents, David Webb, 59, of North Palm Beach, made false statements to more than 70 investors from Virginia and other states. Webb told them that he had a very successful government contracting business, G4i Capital Partners, and that he would only use the investors’ money to pay subcontractors between the times when contracts were awarded and when the government started to pay invoices. Webb also told the investors that their investments were safe. Webb claimed that if his company failed, a trustee would collect the money the government owed for the work already done and repay the investors. Webb provided many false documents and emails to support his fraud scheme. In fact, Webb used later investors’ money to make “interest” payments to earlier investors. Webb lent a large portion of the money to a friend who was trying unsuccessfully to start his own government contracting business. Finally, Webb paid himself a salary and used other money collected from investors on various personal expenses. Webb’s company never obtained a single government contract.
In addition to the prison sentence, Webb was ordered to pay full restitution to his victims and sentenced to three years of supervised release.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Jack Hanly and Grace L. Hill prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-46.