Matthew Torgeson and Matthew McPherson; stolen contracts
Kris sends a link to the story of Matthew Torgeson who set up some service-disabled veterans’ companies, even though he had never served in the military;
Matthew Torgeson, former president of Torgeson Electric Co., and Matthew McPherson, president of McPherson Construction Inc., were accused of fraudulently applying for and receiving construction contracts that were supposed to go to service-disabled veterans and other disadvantaged groups. Also cited in the in a U.S. District Court filing in the Western District of Missouri case was Kansas City-area businessman Patrick Michael Dingle.
The three are accused of setting up front companies to fraudulently get federal contracts meant to be awarded to specific small business groups, referred to as set-aside contracts.
In 50-plus pages, U.S. Attorney Timothy Garrison said there was “probable cause” to believe Torgeson, Dingle and McPherson competed for and received federal contracts to which they were not entitled by setting up at least three companies, Zieson Construction Co. LLC, Simcon Corp. and Onsite Construction Group LLC.
The civil action asks that properties and bank accounts owned Torgeson, Dingle, Zieson Construction and another co-conspirator be forfeited because they were proceeds of the alleged fraud.
A complex and detailed outline filed by Garrison says Zieson was set up as a service-disabled veteran-owned businesses, referred to as SDVOSB, and to fall under the 8(a) Business Development Program, which supports economically and socially disadvantaged groups…Throughout the court filing, the U.S. attorney listed millions of federal dollars paid to Zieson and Simcon and then funneled to Torgeson, McPherson and Dingle. Between April 2010 and January 2018, the U.S. Treasury paid about $317.4 million in “illicit funds” to Zieson, Simcon and Onsite, which Garrison’s office tracked to accounts benefiting Torgeson, McPherson and Dingle, as well as others associated with the alleged fraud.
Real veterans were caught in the Justice Department’s net because they pretended to be the decision makers of these companies.
Charges could also be levied against the veterans or minority individuals whose names were used to set up the company and allegedly fraudulently signed paperwork stating they were managing the companies.
Category: Crime
There is some seriously good money to be made from the pain of others.
While to the government $317.4 million is chump change, those funds (our tax $$$s) should have gone to help real disabled vets, not line the pockets of grifters. Hope criminal actions follow the civil case.
Nice to see my taxes at work. /sarc
Just shaking my head over this.
If only this were an isolated case. Anywhere the govt incentivizes certain traits, people will take advantage of it. Just look at Senator Pocahontas.
Elaine Ricci was unavailable for comment.
A couple of “Phildoesque” dudes, indeed.
I wonder if they will be co-awarded and honored with the “All-Points Logistics Men of the Year” Award?
The Golden Phildo of Fate?
Sad, very sad.
Wondering is this is the same company whose workers were pulled of the job by the FBI at the Kansas City VA Hospital addition late last year. I was told (at that time)the construction company had been busted for this same thing.
They were working on our new entrance at the Kansas City VA and all of the sudden several people were led off in handcuffs. Nothing has been done in a couple of months. Project was to be completed in fall of 2018.Looks like hell now.