Ex-finance director targeted in federal indictment
STEUBENVILLE – An 11-count federal indictment filed in U.S. District Court in Wheeling names former Steubenville Finance Director Michael J. Marshall and three other area residents as participants in a conspiracy to defraud the federal government of $140 million.
The indictment was filed June 2 but remained sealed until Thursday. The U.S. Attorney’s Office is seeking a monetary judgment of at least $24 million from the four defendants who are accused of setting up minority businesses in order to obtain contracts for work for federal agencies.
A spokesperson said the U.S. Attorney’s office had no additional comment.
Marshall served as the city’s finance director from 1995 until July 2010. A city official had no comment on the indictment against Marshall.
Named as co-conspirators in the 28-page indictment were Brandt Stover, Stephen M. Powell and Nichole P. Northcraft. Stover also has been accused of witness intimidation.
The indictment alleges Marshall was the accountant, attorney and inside office manager for several participants described in the indictment, while Stover was called the general manager.
According to the indictment, Marshall, Stover, Powell and Northcraft “conspired with each other and with other persons known and unknown to defraud the United States and its agencies including the Department of Defense, the Small Business Administration and the Department of Veterans Affairs for the purpose and object of unlawfully obtaining money from federal agency contracts awarded to the participants.”
The indictment said the period covered ran from February 2003 through last October.
The indictment also alleges Marshall, Stover and Powell made false statements to the Small Business Administration and Capital Ownership Development program on behalf of Rainbow Tech Inc. in 2005.
Sometime in 2006 Marshall, Stover and Powell approached a relative of Powell’s to form an electrical company.
called the Thomas Co., also known as Thomco Inc., “even though this relative had no electrical or contracting experience,” according to the federal indictment.
Counts two, three, four and five of the indictment allege the defendants fraudulently sought and received $140 million for payments from federal agency contracts while making an approximately $24,017,312 profit.
Count six of the indictment alleges Stover and his co-conspirators in April 2009 through Weirton-based Braun Technology Solutions bid on a contract with the Veterans Affairs Administration to replace the sealant around the glass and frames of the curtain wall plate glass windows at the Veterans Affairs Medical Center in Clarksburg, W.Va.
“In or about April and May 2009, the defendant caused another person to alter the bids of a subcontractor to provide all labor, material and equipment necessary to replace the sealant. The bid amounts were altered from $44,490 and $7,750 to the amounts of $95,890 and $14,700. On or about Aug. 12, 2009, Braun Technology Solutions submitted a request for payment of $160,877,” cited the indictment.
“In addition to the altered subcontractor’s bid, BTS’s proposal included additional expenses with general and administrative costs and profit which resulted in an overpayment by the United States of approximately $73,793,” the indictment alleges.
Count eight of the federal indictment claims Stover and his co-conspirators in September 2011 had the N-Powell Co. bid on a contract with the Department of the Navy to build a fence at the Upper Base, Naval Information Operations Command in Sugar Grove, W.Va.
“The bid was altered in a material way from $168,427 to $410,966 and included additional expenses with general and administrative costs and profit which resulted in overpayment by the United States of approximately $297,022,” noted the indictment.
Count 11 of the federal indictment accused Stover on Dec. 5, 2012, through the N-Powell Co., of submitting a claim of $49,554.50 to the Navy seeking partial payment on a fraudulent contract for work already completed on the Sugar Grove fence project.
The indictment also accused Stover of tampering with a witness on March 5, 2012, when he allegedly told Powell and Northcraft, “to not give the Federal Bureau of Investigation certain records and to not talk to the FBI about certain agreements.”
The federal prosecutors also claim Marshall, Stover and Powell set up two real estate companies to purchase property with money obtained from the participants named in the indictment.
Ex-finance director targeted in federal indictment
STEUBENVILLE – An 11-count federal indictment filed in U.S. District Court in Wheeling names former Steubenville Finance Director Michael J. Marshall and three other area residents as participants in a conspiracy to defraud the federal government of $140 million.
The indictment was filed June 2 but remained sealed until Thursday. The U.S. Attorney’s Office is seeking a monetary judgment of at least $24 million from the four defendants who are accused of setting up minority businesses in order to obtain contracts for work for federal agencies.
A spokesperson said the U.S. Attorney’s office had no additional comment.
Marshall served as the city’s finance director from 1995 until July 2010. A city official had no comment on the indictment against Marshall.
Named as co-conspirators in the 28-page indictment were Brandt Stover, Stephen M. Powell and Nichole P. Northcraft. Stover also has been accused of witness intimidation.
The indictment alleges Marshall was the accountant, attorney and inside office manager for several participants described in the indictment, while Stover was called the general manager.
According to the indictment, Marshall, Stover, Powell and Northcraft “conspired with each other and with other persons known and unknown to defraud the United States and its agencies including the Department of Defense, the Small Business Administration and the Department of Veterans Affairs for the purpose and object of unlawfully obtaining money from federal agency contracts awarded to the participants.”
The indictment said the period covered ran from February 2003 through last October.
The indictment also alleges Marshall, Stover and Powell made false statements to the Small Business Administration and Capital Ownership Development program on behalf of Rainbow Tech Inc. in 2005.
Sometime in 2006 Marshall, Stover and Powell approached a relative of Powell’s to form an electrical company called the Thomas Co., also known as Thomco Inc., “even though this relative had no electrical or contracting experience,” according to the federal indictment.
Counts two, three, four and five of the indictment allege the defendants fraudulently sought and received $140 million for payments from federal agency contracts while making an approximately $24,017,312 profit.
Count six of the indictment alleges Stover and his co-conspirators in April 2009 through Weirton-based Braun Technology Solutions bid on a contract with the Veterans Affairs Administration to replace the sealant around the glass and frames of the curtain wall plate glass windows at the Veterans Affairs Medical Center in Clarksburg, W.Va.
“In or about April and May 2009, the defendant caused another person to alter the bids of a subcontractor to provide all labor, material and equipment necessary to replace the sealant. The bid amounts were altered from $44,490 and $7,750 to the amounts of $95,890 and $14,700. On or about Aug. 12, 2009, Braun Technology Solutions submitted a request for payment of $160,877,” cited the indictment.
“In addition to the altered subcontractor’s bid, BTS’s proposal included additional expenses with general and administrative costs and profit which resulted in an overpayment by the United States of approximately $73,793,” the indictment alleges.
Count eight of the federal indictment claims Stover and his co-conspirators in September 2011 had the N-Powell Co. bid on a contract with the Department of the Navy to build a fence at the Upper Base, Naval Information Operations Command in Sugar Grove, W.Va.
“The bid was altered in a material way from $168,427 to $410,966 and included additional expenses with general and administrative costs and profit which resulted in overpayment by the United States of approximately $297,022,” noted the indictment.
Count 11 of the federal indictment accused Stover on Dec. 5, 2012, through the N-Powell Co., of submitting a claim of $49,554.50 to the Navy seeking partial payment on a fraudulent contract for work already completed on the Sugar Grove fence project.
The indictment also accused Stover of tampering with a witness on March 5, 2012, when he allegedly told Powell and Northcraft, “to not give the Federal Bureau of Investigation certain records and to not talk to the FBI about certain agreements.”
The federal prosecutors also claim Marshall, Stover and Powell set up two real estate companies to purchase property with money obtained from the participants named in the indictment.
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