Jury Convicts Defense Contractor of Mail Fraud, False Claims

COLUMBUS, Ohio – A United States District Court jury convicted Stephan D. Boggs, 63, of Columbus with four counts of mail fraud and 21 counts of false claims.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Brian J. Reihms, Special Agent in Charge, Defense Criminal Investigative Services (DCIS), Central Field Office, announced the verdict reached yesterday, which was returned following a trial that began on July 11 before U.S. District Judge James L. Graham.

According to court documents and testimony, Boggs served as the president of Boggs & Associates, Inc., a Department of Defense (DoD) contractor who sold and supplied a variety of parts used by the military.

From approximately April 2010 through January 2014, the DoD issued purchase orders to Boggs & Associates for a variety of military parts and components used on various military weapons systems including aircraft, vehicles and vessels.  The parts were required to meet certain military specifications. The majority of these parts are considered critical application items.  A critical application item is defined as an item essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by military services.

Boggs knowingly supplied non-conforming parts to the DoD through purchase orders issued by the Defense Logistics Agency.

The Agency’s testing center found that parts from 30 different purchase orders were non-conforming. Specifically, the parts were made from unauthorized substituted material, were dimensionally defective, used unauthorized inferior fittings, not heat treated properly, not plated properly and/or did not pass specified testing requirements.

During trial, the evidence showed that the inspection reports and certifications he signed and submitted to the government contained false and fraudulent representations.

“Contractors who provide defective and nonconforming parts place the reliability of U.S. military equipment in jeopardy,” Acting U.S. Attorney Glassman said. “That in turn puts our men and women in uniform in danger. That’s why I think it’s crucial that contractors like Boggs are held accountable for their crimes, and the jury’s verdict does so.”

Mail fraud is a crime punishable by up to 20 years in prison and each count of false claims carries a maximum potential penalty of five years in prison.

Acting U.S. Attorney Glassman commended the investigation of this case by DCIS, and Assistant United States Attorneys Jessica W. Knight and J. Michael Marous, who prosecuted the case.