Two Ohio men admit to deriving unlawful profits from federal grants
HEELING, WEST VIRGINIA – Two Steubenville, Ohio men pled guilty today in federal court for their roles in manipulating business development programs facilitated by the United States Small Business Administration and the United States Department of Veterans Affairs to derive unlawful profits of approximately twenty-four million dollars, Criminal Chief Assistant United States Attorney Randolph J. Bernard announced.
Michael J. Marshall, 66, and Brandt Stover, 63, each pled guilty to one count of “Attempt and Conspiracy to Commit Wire Fraud.” Marshall and Stover admitted to being involved in a scheme to defraud the United States Government where they violated regulations to enter in to and remain in programs for disadvantaged individuals and disabled veterans. They were awarded disadvantaged contracts worth more than $140,000,000 from February 2003 to October 2014.
The Small Business Administration operates programs to assist socially or economically disadvantaged business operators, and the U.S. Department of Veterans Affairs assists disabled veterans in competing for government contracts. The businesses must be unconditionally owned and controlled by the qualifying individuals in order to comply with federal law.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Andrew Cogar prosecuted the cases on behalf of the government. The U.S. Small Business Administration Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Department of Labor Office of Inspector General, and the Federal Bureau of Investigation investigated.
U.S. Magistrate Judge James E. Seibert presided.