Morgantown Business Owner Sentenced for Federal Broadband Funding Fraud

CLARKSBURG, WEST VIRGINIA – Timothy Chad Henson, the owner of Clearfiber, Inc., an internet service provider in Monongalia County, was sentenced today to 18 months in federal prison for money laundering.

According to court documents and statements made in court, Henson, 35, of Morgantown, West Virginia, applied for United States Department of Agriculture (USDA) funding to provide high-speed internet services in Monongalia and Marion Counties. The USDA’s Community Connect Program offered grants to eligible applicants providing broadband services to rural areas.  Henson’s Clearfiber, Inc. was awarded $1.96 million. Henson then submitted false invoices to the USDA to receive more than $340,000, transferring $322,900 into another bank account for his personal use.

Henson was ordered to pay $1,401,849.06 in restitution.

Henson will serve three years of supervised release following his prison sentence.

Assistant U.S. Attorney Eleanor Hurney prosecuted the case on behalf of the government.

This case was investigated by the Internal Revenue Service-Criminal Investigations. 

Chief U.S. District Judge Thomas S. Kleeh presided.