Virginia Resident Sentenced in West Palm Beach to Nine Years in Prison for Defrauding His Employer and the United States Government
Brian Charles Tolley, 32, of Bedford, Virginia, was sentenced today to 9 years in prison, after having been previously convicted at trial in West Palm Beach, Florida of wire fraud, identity theft, aggravated identity theft, possession of counterfeit government seals with the intent to defraud, money laundering, making and subscribing false federal income tax returns, and failing to file federal income tax returns.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office; Brian A. Hauck, Special Agent-in-Charge, North Central Fraud Field Office, United States Army Criminal Investigation Command; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); and Special Agent in Charge Wendell W. Palmer, United States Air Force Office of Special Investigations, Procurement Fraud Detachment Southeast, made the announcement.
U.S. District Judge Kenneth A. Marra sentenced Tolley to 108 months in prison, to be followed by 3 years of supervised release, and ordered the defendant to pay $2,344,439 in restitution. In addition, Tolley was ordered to forfeit real estate in Bedford, Virginia, a 2011 Buick Enclave, and a 2011 Lincoln Navigator.
According to the evidence presented at trial, the forfeiture hearing, and sentencing, Tolley was employed by PartsBase, Inc., which is located in Boca Raton, Florida, as Vice President from 2001 through 2001, as Chief Information Officer from 2001 through January 2014, and President from 2010 until January 2014. Between June 2007 and September 2013, Tolley submitted to PartsBase forged documentation from various branches of the U.S. military and other government agencies. These documents purported to acknowledge Tolley’s orders of procurement data on PartsBase’s behalf, and purported to be signed by real federal employees. Tolley then requested reimbursement from PartsBase for charges he had purportedly incurred from the government agencies. In total, PartsBase paid Tolley approximately $1.7 million in reimbursements based on this fraudulent scheme. Tolley used the money he procured from the fraudulent scheme to purchase the 2011 Buick Enclave, the 2011 Lincoln Navigator, the real estate in Bedford, Virginia and other items. In addition, Tolley failed to report the proceeds of his fraud scheme as income on the federal income tax returns he filed for tax years 2007 through 2011. Tolley failed to file returns for tax years 2012 or 2013.
Mr. Greenberg commended the investigative efforts of DCIS, the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit, IRS-CI, and the Air Force Office of Special Investigations Procurement Fraud Unit. This case was prosecuted by Assistant U.S. Attorneys Marc Osborne and Mark Dispoto.