Area Government Contractor Pleads Guilty to Federal Fraud Charges

St. Louis, MO – JAMES MATTHEW ALEXANDER, the President of a local defense contractor, pled guilty to a scheme to defraud the United States related to the construction of shipping containers for use with the F/A-18 Super Hornet aircraft.

Matthews Manufacturing, Incorporated (MMI) was a defense contractor that provided equipment to the United States Department of Defense (DoD) and the United States armed services.  MMI served as a prime contractor for multiple United States Government contracts.  Defendant Alexander was the President of MMI.

In June 2010, the Defense Logistics Agency, a component of DoD, awarded MMI a contract for the construction of fifty-six High Pressure Turbine Module Shipping Containers for use with the F/A-18 Super Hornet aircraft.  The contract designated the container a "Critical Application Item."  Shock mounts are utilized in the construction of F414 High Pressure Turbine Module Shipping Containers.  The DLA contract with MMI specified and required that shock mounts be no older than one year old when installed in the container.

According to court documents, Alexander, as part of a scheme to defraud the government, altered the original white alpha-numeric marking indicating the actual cure date of the shock mounts MMI received from the manufacturer.  Original dates were “buffed” off and modified stamps were used to re-stamp the mounts with a cure date to comply with the contract specifications.  Alexander and MMI then shipped the containers with the altered shock mounts bearing false and forged cure dates to the government.  As a result of the fraud, payments by the government to MMI for delivered F414 High Pressure Turbine Module Shipping Containers totaled $120,536.

Alexander, Chesterfield, MO, pled guilty Thursday afternoon to one felony count of mail fraud before United States District Judge E. Richard Webber.  Sentencing has been set for December 10, 2015.

Co-defendant Larry Charles Maxwell, Jr., St. Louis, MO, was indicted on related charges.  He is presumed innocent until and unless proven guilty.

This charge carries a maximum penalty of 20 years in prison and/or a fine of $250,000.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by the United States Department of Defense, Defense Criminal Investigative Service and the United States Naval Criminal Investigative Service.  Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.