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Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Stafford couple plead guilty in major government fraud case
Posted by:
The Neighborhood Watch!
()
Date: August 09, 2013 04:51AM
Stafford couple plead guilty in major government fraud case
http://fairfaxnews.com/2013/08/stafford-couple-sentenced-in-major-government-fraud-case/
Kathleen D. McGrade, 64, and Brian C. Collinsworth, 47, of Stafford, pleaded guilty Friday to major fraud against the government, conspiracy to launder monetary instruments, and engaging in unlawful monetary transactions.
McGrade and Collinsworth were indicted on April 25, 2013, by a federal grand jury on charges of conspiracy, major fraud against the government, wire fraud, false statements, and engaging in unlawful monetary transactions. Each defendant faces a maximum penalty of 30 years imprisonment when they are sentenced on November 8, 2013.
“Defendants McGrade and Collinsworth — now convicted felons — defrauded and stole from the American people, plain and simple,” said U.S. Attorney Neil H. MacBride. “We, along with our law enforcement partners, are committed to ferreting out and prosecuting those that destroy the integrity of the government contracting process.”
In a statement of facts filed with the plea agreement, the defendants admitted that McGrade was a contract employee for the Department of State and performed the role of a contract specialist for an office that awarded construction contracts for work done at U.S. embassies worldwide. Collinsworth worked at one of the companies that received contracts.
In 2006, the defendants married, but did not tell others at the Department of State. The defendants started a company, the Sterling Royale Group, or SRG, with McGrade serving as the president and Collinsworth the vice-president and project manager.
In late 2007, McGrade caused a State Department contracting officer to sign a contract between the Department of State and SRG, and McGrade failed to disclose her role in SRG, her marriage, or that proper contracting competitive procedures had not been followed. The contract made SRG eligible to receive task orders for work to be done at embassies and McGrade began steering work to the company. She acted as the contract negotiator between the Department of State engineers responsible for getting the jobs done, on the one hand, and Collinsworth, who was acting on behalf of SRG and the subcontractors, on the other.
Between 2008 and 2011, McGrade caused Department of State contracting officers to sign 17 task orders awarding work worth almost $53 million. In 2010, the defendants also lied about their marriage to investigators conducting McGrade’s background investigation regarding renewal of her security clearance.
In the summer of 2011, a news article disclosed the defendants’ marriage and the Department of State terminated her employment. The Department of State, however, had paid SRG about $39 million, and after the defendants had paid their subcontractors, they still had millions of dollars. Among other things, they bought houses, a condominium, a yacht, a Lexus automobile, jewelry, and a Steinway piano with the fraudulently obtained money. The defendants have agreed to forfeit all of those items.
“The scope and breadth of this fraud is reprehensible, not just because of the dollars involved, but because of the position of trust that Ms. McGrady held,” said Thomas J. Kelly, Special Agent in Charge for IRS Criminal Investigation. “Her actions denied small businesses the opportunity to compete for these government contracts and that is unacceptable. Today’s pleas put corrupt business owners like Ms. McGrade and Mr. Collinsworth on notice, that the government will get to the truth no matter how they try to disguise their business transactions. IRS-CI will continue to work with the United States Attorney and our other law enforcement partners to root out these corrupt business owners.”
McGrade and Collinsworth (MySpace photo)
Attachments:
http://fairfaxnews.com/2013/08/stafford-couple-sentenced-in-major-government-fraud-case/
Kathleen D. McGrade, 64, and Brian C. Collinsworth, 47, of Stafford, pleaded guilty Friday to major fraud against the government, conspiracy to launder monetary instruments, and engaging in unlawful monetary transactions.
McGrade and Collinsworth were indicted on April 25, 2013, by a federal grand jury on charges of conspiracy, major fraud against the government, wire fraud, false statements, and engaging in unlawful monetary transactions. Each defendant faces a maximum penalty of 30 years imprisonment when they are sentenced on November 8, 2013.
“Defendants McGrade and Collinsworth — now convicted felons — defrauded and stole from the American people, plain and simple,” said U.S. Attorney Neil H. MacBride. “We, along with our law enforcement partners, are committed to ferreting out and prosecuting those that destroy the integrity of the government contracting process.”
In a statement of facts filed with the plea agreement, the defendants admitted that McGrade was a contract employee for the Department of State and performed the role of a contract specialist for an office that awarded construction contracts for work done at U.S. embassies worldwide. Collinsworth worked at one of the companies that received contracts.
In 2006, the defendants married, but did not tell others at the Department of State. The defendants started a company, the Sterling Royale Group, or SRG, with McGrade serving as the president and Collinsworth the vice-president and project manager.
In late 2007, McGrade caused a State Department contracting officer to sign a contract between the Department of State and SRG, and McGrade failed to disclose her role in SRG, her marriage, or that proper contracting competitive procedures had not been followed. The contract made SRG eligible to receive task orders for work to be done at embassies and McGrade began steering work to the company. She acted as the contract negotiator between the Department of State engineers responsible for getting the jobs done, on the one hand, and Collinsworth, who was acting on behalf of SRG and the subcontractors, on the other.
Between 2008 and 2011, McGrade caused Department of State contracting officers to sign 17 task orders awarding work worth almost $53 million. In 2010, the defendants also lied about their marriage to investigators conducting McGrade’s background investigation regarding renewal of her security clearance.
In the summer of 2011, a news article disclosed the defendants’ marriage and the Department of State terminated her employment. The Department of State, however, had paid SRG about $39 million, and after the defendants had paid their subcontractors, they still had millions of dollars. Among other things, they bought houses, a condominium, a yacht, a Lexus automobile, jewelry, and a Steinway piano with the fraudulently obtained money. The defendants have agreed to forfeit all of those items.
“The scope and breadth of this fraud is reprehensible, not just because of the dollars involved, but because of the position of trust that Ms. McGrady held,” said Thomas J. Kelly, Special Agent in Charge for IRS Criminal Investigation. “Her actions denied small businesses the opportunity to compete for these government contracts and that is unacceptable. Today’s pleas put corrupt business owners like Ms. McGrade and Mr. Collinsworth on notice, that the government will get to the truth no matter how they try to disguise their business transactions. IRS-CI will continue to work with the United States Attorney and our other law enforcement partners to root out these corrupt business owners.”
McGrade and Collinsworth (MySpace photo)
Attachments:
Re: Stafford couple plead guilty in major government fraud case
Posted by:
Opinionated
()
Date: August 09, 2013 07:36AM
Lying to the government during a security clearance renewal was a no-win situation. Did they really think it would work?
Re: Stafford couple plead guilty in major government fraud case
Posted by:
lostinthemix4
()
Date: August 21, 2013 11:09PM
I think it's really sad that this man could:
(1) send a previous wife to Texas telling her to take their four children {who were aged 5,3,1, and 8 months at the time in '99} because he couldn't look at them and be reminded of her,
(2) divorce her in 2/2002 for abandoning HIM,
(3) leave his children languishing in Texas for another 2 years and 6 months while their mother (a) has to rely on her family to house them, (b) has to rely of PUBLIC ASSISTANCE to support them and (c)forcing her to turn to the Texas attorney general to get child support which she started receiving 8/04 in the amount of $1609 which immediately dropped so that by 12/04 she was only receiving +/- $416.96 which continued til 9/09},
(4) FINALLY contact his ex-wife in November '05 to see his kids and introduce their new, soon to be step mother, when they married 5/06,
{and the mother of his first four kids didn't know this till MUCH later}
(5)apparently start their scam in late 2007, all the while urging {and threatening legal action to take the kids if she didn't comply} the kids' mother to drop the Texas Attorney General case against him and signing an agreement with him to accept a lesser amount than was awarded and dismissing the arrears {the arrears was already mounting and he wanted an agreement "just between them"}
(6) inform his ex that he's taking his case to court in 6/09 with his {now} wife to petition the court to dismiss the arrears {which by this time is about $101,000} saying that he cannot afford to be paying the court ordered amount of $1609 {even though he's not even paying THAT} because he is not making enough money to continue to justify his ex wife being awarded that large a sum...{mind you, he and his wife are receiving federal monies for contracts being awarded to Sterling Royale by this time!!!}... and he is awarded a reduction in support from $1609 / month to $650 / month for four children, BUT not granted relief by having the arrears dismissed,
(7) get outed by a news article in 2011 where he DENIES he's married but his MySpace page says he is and She's fired from her job...{of course the ex doesn't find out for almost an entire year, cause she's getting the "allotted amount" of $650 plus a graciously added $100 to bring down the arrears and trying to make due},
(8) then in June 2012, doubtless using fertility treatments so that it could be made possible {she WAS past childbearing age at 63} he welcomes a new son
Now, tell me this... How would YOU feel? AND could enough attention be brought to this to ensure that his first four children get the same consideration as the last child {personally thinking that that child has a trust fund to ensure he is well taken care of in the event that his parents DO go to jail and the other four are SOL}
(1) send a previous wife to Texas telling her to take their four children {who were aged 5,3,1, and 8 months at the time in '99} because he couldn't look at them and be reminded of her,
(2) divorce her in 2/2002 for abandoning HIM,
(3) leave his children languishing in Texas for another 2 years and 6 months while their mother (a) has to rely on her family to house them, (b) has to rely of PUBLIC ASSISTANCE to support them and (c)forcing her to turn to the Texas attorney general to get child support which she started receiving 8/04 in the amount of $1609 which immediately dropped so that by 12/04 she was only receiving +/- $416.96 which continued til 9/09},
(4) FINALLY contact his ex-wife in November '05 to see his kids and introduce their new, soon to be step mother, when they married 5/06,
{and the mother of his first four kids didn't know this till MUCH later}
(5)apparently start their scam in late 2007, all the while urging {and threatening legal action to take the kids if she didn't comply} the kids' mother to drop the Texas Attorney General case against him and signing an agreement with him to accept a lesser amount than was awarded and dismissing the arrears {the arrears was already mounting and he wanted an agreement "just between them"}
(6) inform his ex that he's taking his case to court in 6/09 with his {now} wife to petition the court to dismiss the arrears {which by this time is about $101,000} saying that he cannot afford to be paying the court ordered amount of $1609 {even though he's not even paying THAT} because he is not making enough money to continue to justify his ex wife being awarded that large a sum...{mind you, he and his wife are receiving federal monies for contracts being awarded to Sterling Royale by this time!!!}... and he is awarded a reduction in support from $1609 / month to $650 / month for four children, BUT not granted relief by having the arrears dismissed,
(7) get outed by a news article in 2011 where he DENIES he's married but his MySpace page says he is and She's fired from her job...{of course the ex doesn't find out for almost an entire year, cause she's getting the "allotted amount" of $650 plus a graciously added $100 to bring down the arrears and trying to make due},
(8) then in June 2012, doubtless using fertility treatments so that it could be made possible {she WAS past childbearing age at 63} he welcomes a new son
Now, tell me this... How would YOU feel? AND could enough attention be brought to this to ensure that his first four children get the same consideration as the last child {personally thinking that that child has a trust fund to ensure he is well taken care of in the event that his parents DO go to jail and the other four are SOL}
Re: Stafford couple plead guilty in major government fraud case
Posted by:
Grinds my gears
()
Date: August 21, 2013 11:53PM
lostinthemix4 Wrote:
>
> Now, tell me this... How would YOU feel?
Pretty good. White collar crime seems to pay.
You don't get shit for prison time and you're living the high life before getting caught.
I'll bet money is stashed away for when these fuckers get out.
It looks like the honest working man is a sucker.
>
> Now, tell me this... How would YOU feel?
Pretty good. White collar crime seems to pay.
You don't get shit for prison time and you're living the high life before getting caught.
I'll bet money is stashed away for when these fuckers get out.
It looks like the honest working man is a sucker.
Re: Stafford couple plead guilty in major government fraud case
Posted by:
Oogruk
()
Date: August 22, 2013 01:51AM
If they'd only used an Alaska Native Corporation or tribal entity as a front, they'd probably still be at it...
Re: Stafford couple plead guilty in major government fraud case
Posted by:
Jim1967
()
Date: November 15, 2013 07:18PM
They were supposed to be sentenced on November 8th. Why no followup story?
Re: Stafford couple plead guilty in major government fraud case
Posted by:
OIOIOIOIOIOIO
()
Date: November 15, 2013 08:43PM
Jim1967 Wrote:
-------------------------------------------------------
> They were supposed to be sentenced on November
> 8th. Why no followup story?
Because they voted Republican?
-------------------------------------------------------
> They were supposed to be sentenced on November
> 8th. Why no followup story?
Because they voted Republican?
Re: Stafford couple plead guilty in major government fraud case
Posted by:
xoxo
()
Date: December 06, 2013 10:40AM
Sentencing is Today at 9AM
Re: Stafford couple plead guilty in major government fraud case
Posted by:
Go With Turf
()
Date: December 06, 2013 11:06AM
If all they had done was make money with a bogus turf study, they would not have had any problems.
Just look at Gibson Consulting, some clown in Texas gets 100s of thousands for studies that are useless and full of mistakes. Then we have the turf task force, talk about self serving lies. Someone probably has a nice house somewhere off of those fields.
Just look at Gibson Consulting, some clown in Texas gets 100s of thousands for studies that are useless and full of mistakes. Then we have the turf task force, talk about self serving lies. Someone probably has a nice house somewhere off of those fields.
Re: Stafford couple plead guilty in major government fraud case
Posted by:
A-hole -> () o
()
Date: December 06, 2013 12:55PM
Dude got himself some o' that OLD Pussy... Likes raw dogging it wit da creampie...
Re: Stafford couple plead guilty in major government fraud case
Posted by:
Statistics
()
Date: December 06, 2013 01:03PM
"major government fraud"
A few million is "major" fraud?
We're f*cked.
A few million is "major" fraud?
We're f*cked.
Re: Stafford couple plead guilty in major government fraud case
Posted by:
????
()
Date: December 06, 2013 02:35PM
The Neighborhood Watch! Wrote:
-------------------------------------------------------
> In 2006, the defendants married, but did not tell
> others at the Department of State. The defendants
> started a company, the Sterling Royale Group, or
> SRG, with McGrade serving as the president and
> Collinsworth the vice-president and project
> manager.
How does DoS not know that two of their employees were married?
-------------------------------------------------------
> In 2006, the defendants married, but did not tell
> others at the Department of State. The defendants
> started a company, the Sterling Royale Group, or
> SRG, with McGrade serving as the president and
> Collinsworth the vice-president and project
> manager.
How does DoS not know that two of their employees were married?
Re: Stafford couple plead guilty in major government fraud case
Posted by:
Marvin C. Bush
()
Date: December 06, 2013 04:03PM
24 months and 18 months seem pretty light to me for stealing $53 million....
White collar crime seems to pay when you're White.
Former State Department Contract Employee And Husband Sentenced For $53 Million Fraud
FOR IMMEDIATE RELEASE
December 6, 2013
ALEXANDRIA, Va. – Kathleen D. McGrade, age 64, and Brian C. Collinsworth, age 47, of Stafford, Va., were sentenced today to 24 and 18 months incarceration, respectively, by U.S. District Judge Liam O’Grady in the Eastern District of Virginia for committing major fraud against the government, conspiracy to launder monetary instruments, and engaging in unlawful monetary transactions.
White collar crime seems to pay when you're White.
Former State Department Contract Employee And Husband Sentenced For $53 Million Fraud
FOR IMMEDIATE RELEASE
December 6, 2013
ALEXANDRIA, Va. – Kathleen D. McGrade, age 64, and Brian C. Collinsworth, age 47, of Stafford, Va., were sentenced today to 24 and 18 months incarceration, respectively, by U.S. District Judge Liam O’Grady in the Eastern District of Virginia for committing major fraud against the government, conspiracy to launder monetary instruments, and engaging in unlawful monetary transactions.
Re: Stafford couple plead guilty in major government fraud case
Posted by:
Damn...
()
Date: December 06, 2013 04:18PM
That's it? Outrageous.