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Pennsylvania businessman charged with defrauding U.S. government

A Pennsylvania businessman who was is the majority owner of NP Precision was reportedly charged on July 17 for fraud. According to the report, the U.S. government accused the 59-year-old man of defrauding them in the amount of around $1.2 million. The business was contracted by the government to manufacture and produce hardware components that are used in military aircraft.

The lawsuit claimed that the owner began misusing government funds beginning as early as December 2007. It was claimed that the man was pocketing money that was meant to pay subcontractors and by requesting progress payments for costs that the company had not actually incurred. The alleged stolen money was believed to have come from progress payments that were made on two contracts. The government claimed that the drive shaft couplings that were to be produced either arrived very late or were incomplete.

The business owner reportedly owned 85 percent of the company and was responsible for overseeing all of the business and contract transactions, including contracting with the U.S. government. If the man is found guilty of fraud, he could potentially face up to 20 years in prison.

Those who are accused of attempting to defraud the U.S. government may be facing serious penalties if they are convicted. For example, they may face a lengthy prison sentence, probation once they are released, hefty fines and be required to pay back the money that was allegedly stolen. In addition, the conviction will go on their permanent record, which could potentially make it difficult to seek employment later on. However, an attorney may be able to help their client provide evidence that the alleged attempt at fraud did not actually happen or put together another defense strategy that could reduce the consequences.

Source: The Delaware County Daily Times, "Feds indict Folcroft businessman in $1.2M fraud", July 17, 2014

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