Nebraska Men Sentenced for Conspiracy to Commit Mail Fraud

United States Attorney Deborah R. Gilg announced that on April 4, 2016, Jeffery Negus, of Omaha, Nebraska, age 55, and Gregory Negus of Omaha, Nebraska, age 60, were sentenced for conspiracy to commit mail fraud.  The Honorable Chief Judge Laurie Smith Camp sentenced both men to a 4 year term of probation.  Both men were also ordered to make restitution in the amount of $708,743.21.    

An investigation conducted by the United States Department of Labor determined that from 2007 through 2011, Jeffery Negus and Gregory Negus operated businesses in the District of Nebraska identified as Negus-Sons, Inc and Netal, Inc.  These businesses entered into federally-funded prevailing wage construction contracts for work on several construction projects in the District of Nebraska.  Negus-Sons, Inc and Netal, Inc. accepted payments of approximately $4.9 million dollars relating to the federally-funded construction projects for which prevailing wage fringe benefit contributions were to be paid to employee benefit plans. 

The United States Department of Labor determined that Jeffery Negus and Gregory Negus fraudulently diverted, for their own use and the use of Negus-Sons, Inc and Netal, Inc., fringe benefit contributions relating to the federally-funded prevailing wage construction contracts in the approximate amount of $708,741.56, which payments were supposed to go to employee benefit plans.  As part of the scheme, Jeffery Negus and Gregory Negus used the United States mail to submit hundreds of certified reports to governmental agencies, which falsely represented that the fringe benefit contributions were being made to the employee benefit plans.   

This case was investigated by the United States Department of Labor.