MCKEESPORT CONTRACTOR PLEADS GUILTY TO DEFRAUDING THE DEFENSE DEPARTMENT AS PART OF THE REBUILDING OF THE PENTAGON POST 9/11
United States Attorney Mary Beth Buchanan announced today, February 20, 2008, that Thomas J. Cousar, a former resident of Monroeville, Catherine L. Bradica, a former resident of North Huntingdon, and Daniel D. Monte, a resident of Clifton, Virginia, pleaded guilty in federal court in Pittsburgh to charges relating to a scheme to defraud the United States in connection with the reconstruction of the Pentagon following the terrorist attacks of September 11, 2001.
Cousar, age 54, and Bradica, age 55, both of whom currently reside in Alexandria, Virginia, each pleaded guilty to mail fraud, major fraud against the United States and conspiracy. Monte, age 63, of Clifton, Virginia, pleaded guilty to major fraud against the United States. All of the pleas were entered before United States District Judge Gary L. Lancaster on February 19 or February 20, 2008.
In connection with the guilty pleas, Assistant United States Attorneys James Y. Garrett and Scott W. Brady advised the court that the three defendants participated in a false billing scheme, in which the United States was overcharged for interior reconstruction work at the Pentagon. The work was performed by a business operated by Cousar under the name Capco Construction Company, which had its principal offices in McKeesport, Pa., near Pittsburgh. Bradica was in charge of the Capco office, and Monte was a supervisor for the work done by Capco at the Pentagon.
The false billing scheme occurred during the initial eight months of reconstruction following the attack on the Pentagon, when Capco was allowed to work on a cost reimbursement basis in light of the urgency of the project. The defendants collaborated in creating false bills, that overcharged for Capco's work by padding labor hours and the costs of materials used. Some of the labor hours and materials charged to the Pentagon project were actually devoted to a personal business venture of Cousar and Bradica in McKeesport. Capco's work at the Pentagon was overcharged by the defendants in a total amount of approximately $850,000.
Cousar and Bradica also pleaded guilty to conspiracy for a separate scheme to defraud the United States in the collection of payroll taxes. They arranged for overtime pay earned by selected employees to be issued without any withholding. An amount of $29,700 in income, social security and Medicare taxes were not paid to the United States Treasury as a result.
Judge Lancaster scheduled sentencing for July 25, 2008. The applicable statutes provide for varying sentences for the defendants, ranging up to over 100 years in prison, fines exceeding $1,000,000, or both. However, under the Federal Sentencing Guidelines, the actual sentence imposed on each defendant will be based upon the seriousness of his or her offense conduct and criminal history, if any. Pending sentencing, the court continued each of the defendants on bond.
The Defense Criminal Investigation Service, Internal Revenue Service, Postal Inspection Service, United States Department of Labor Office of Inspector General, and Federal Bureau of Investigation conducted the investigation that led to the prosecution of the three defendants.
After the entry of the pleas, United States Attorney Buchanan and Defense Criminal Investigative Service Special Agent- in-Charge Ed Bradley commented on the importance of the prosecutions, in the following statement, "Following the terrorist attacks on September 11, 2001, most citizens of this country, of all walks of life, demonstrated their true patriotic spirit. At the same time, the defendants in this case demonstrated a base form of greed when they stole material and funds from the Pentagon Reconstruction Project. The guilty pleas announced today were the result of the outstanding work by the dedicated investigators, auditors and prosecutors who pursued this investigation."
# # #