Two Men Convicted On Fraud And False Statements Charges

Federal jury convicts two Texas men on federal fraud and false statements charges

Fraudulent scheme involved $3 million in contracts intended for service-disabled veterans

(STL.News) A federal jury sitting in Albuquerque on March 2 returned a verdict finding Nick L. Medeiros, 49, and Bobby D. Greaves, 62, both of San Antonio, Texas, guilty of federal fraud and false statement charges following a seven-day trial.

A federal grand jury indicted Medeiros and Greaves on June 13, 2018, charging the two men with conspiracy, major fraud against the United States, and two counts of false statements.  The indictment also included forfeiture provisions.  On March 10, 2020, a federal grand jury returned a four-count superseding indictment charging Medeiros and Greaves with unlawfully obtaining more than $3 million in government contracts by falsely and repeatedly representing to the United States that Medeiros, a service-disabled veteran, was operating independently from Greaves, his brother-in-law.  The indictment alleged that instead Medeiros relied on Greaves, who is not a veteran, to complete all of Medeiros’ government contract work by providing the labor and equipment.  The superseding indictment alleged that two of the government contracts involved in the defendants’ fraudulent scheme involved construction projects at Cannon Air Force Base in Clovis, New Mexico, and included a $1.9 million contract to build a “Drop Zone” cybercafé.

The trial began on February 22 and concluded on March 2, when the jury returned guilty verdicts on all four counts.

During the trial, the evidence established that Greaves and Medeiros agreed to create a pass-through entity to get access to programs set aside for service-disabled veterans, and that both made material false statements on which government agencies and personnel relied in awarding contracts to Medeiros’ company.  Evidence also established that Medeiros altered documents, such as bank signature cards and employee resumes.  and submitted the altered versions to the Air Force, the Department of Veterans Affairs, and the Small Business Administration.

The jury deliberated for three hours before returning its guilty verdicts.

“The fraudulent acquisition of contracts intended for service-disabled veterans is an abuse of the system,” said Fred J. Federici, United States Attorney for the District of New Mexico. “Such fraud not only profits unscrupulous parties, it necessarily deprives veterans, who have made a permanent sacrifice in service to our nation, of the opportunity to compete for government contracts to once again serve their country.  This office will honor its duty in prosecuting these crimes to restore justice to our veterans.”

“Conspiring to gain federal contracts set aside for service-disabled veterans is reprehensible,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “These guilty verdicts send a clear message that anyone who attempts to do so will be held accountable. We thank the U.S. Attorney’s Office and our other law enforcement partners for their efforts in this case.”

“The collaboration between the Department of Veterans Affairs Office of Inspector General, OSI and the Department of Justice, was significant in this investigation” said Special Agent in Charge Blair Holmstrand of the Office of Special Investigations, Procurement Fraud Detachment 3, San Antonio, Texas.  “The guilty verdicts reflect the results of the hard work put forth by all agencies involved.”

The investigation began when a concerned citizen brought the close association between Medeiros and Greaves to the attention of the VA OIG, who requested assistance from AFOSI when the initial investigation revealed questionable conduct on Cannon AFB in New Mexico.

Medeiros and Greaves each face up to 25 years in prison, fines of up to twice the amount of money gained by the fraud, and forfeiture of all proceeds involved in the fraud.  The defendants remain on conditions of release pending sentencing, which has not been scheduled.

The Department of Veterans Affairs Office of the Inspector General and the Air Force Office of Special Investigations investigated this case.  Assistant United States Attorneys Paul J. Mysliwiec and Jonathon M. Gerson are prosecuting the case.

 

SOURCE: USDOJ.Today