A Milwaukee-area construction firm and a officials are accused of intrigue a sovereign supervision out of some-more than $200 million by exploiting a module set adult to help minority- and disabled-veteran-owned contractors.
U.S. Attorney Matthew Krueger announced Tuesday that a sovereign grand jury returned a 22-count complaint opposite Brain L. Ganos, 57, of Muskego; the construction association he oversaw, Sonag Co. Inc.; and Mark F. Spindler, 57, a Menominee Falls-based accountant. Both face decades in jail and hundreds of thousands of dollars in fines.
Nicholas Rivecca Sr., 68, of Hartland, also pleaded guilty in a associated box to charges of conspiring to deceive a US government. His LinkedIn profile identifies him as boss of Sonag Ready Mix.
“These charges send a transparent summary to firms that find open funds,” Krueger pronounced in a release. “Cheating will not be tolerated. Lying to regulators is a critical crime. And attempts to hinder investigations will be prosecuted vigorously.”
Ganos, Spindler and Sonag are indicted in a income laundering and rascal intrigue purported to have bilked the sovereign supervision of some-more than $200 million in contracts over 12 years. The complaint accuses them of first companies and appointing minorities or veterans as owners to validate for set-asides from the U.S. Department of Veterans Affairs and other agencies.
In fact, these companies were indeed tranquil by Sonag, according to a indictment.
The complaint alleges Ganos set adult 3 companies with 3 fake owners to win internal and sovereign contracts.
- Nuvo Construction Co. Inc. was skewed to be majority-owned and controlled by an owners identified usually by initials in a indictment. This was finished to validate as a Small Disadvantaged Business for the U.S. Small Business Administration and as a Disadvantaged Business Enterprise for Milwaukee County. The owner, however, worked full time for a opposite association in Minnesota and did not control Nuvo.
- C3T Inc. was set adult to be accurate as a Service-Disabled Veteran-Owned Small Business. The listed owners had no impasse in a association for “long stretches of time,” according to a indictment.
- Pagasa Construction Co. Inc. was set adult to obtain a Small Disadvantaged Business acceptance from a SBA. Its listed owners relied on Sonag officials to classify Pagasa.
Through his company, Ganos is also purported to have laundered income from sovereign contracts received by Nuvo and C3T, fixation a income into accounts he controlled. The complaint charges him with 3 depends of income laundering and 7 depends of spending income from those transactions, including one associated to his squeeze of a 2014 Chevy Corvette Stingray convertible.
In Aug 2016, sovereign agents raided a Milwaukee offices of a companies and a home bureau of Lori J. Michaud, owners of LJM Accounting Services, who worked with a companies concerned in a probe.
Additionally, a complaint accuses Ganos and Spindler of intentionally concealing a intrigue and fibbing to investigators.
A damage notice in a complaint indicates that a supervision seeks to seize dual properties: a condo in Winter Park, Colo., and a skill at 5500-5510 W. Florist Ave. in Milwaukee, that houses offices and warehouses used by Sonag, Nuvo, C3T and Pagasa. The supervision is also seeking to redeem some-more than $2.2 million in money seized from dual bank accounts and a Corvette.
“The gross rascal scheme … denied authorised service-disabled, veteran-owned tiny business and other disadvantaged tiny businesses opportunities to pullulate and grow their businesses,” pronounced SBA OIG Central Region Special Agent-in-Charge Talmadge J. Gaylor, in a release. “Federal contracts set aside for authorised service-disabled, veteran-owned and other disadvantaged tiny businesses are dictated to grow these businesses and enhance a nation’s mercantile base.”