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Upper Marlboro CPA Pleads Guilty in Local Corruption Scheme; Fraud Targeted up to $2.5 Million in Contracts for Minority Firms

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<p><a href&equals;"https&colon;&sol;&sol;www&period;the-chesapeake&period;com&sol;&sol;wp-content&sol;uploads&sol;2014&sol;04&sol;Court-News&period;jpg"><img class&equals;"alignleft wp-image-3402 size-medium" src&equals;"https&colon;&sol;&sol;www&period;the-chesapeake&period;com&sol;&sol;wp-content&sol;uploads&sol;2014&sol;04&sol;Court-News-288x300&period;jpg" alt&equals;"Court News" width&equals;"288" height&equals;"300" &sol;><&sol;a>Upper Marlboro CPA Pleads Guilty in Local Corruption Scheme<br &sol;>&NewLine;<span id&equals;"subTitle">Conspired to Launder Between &dollar;1 Million and &dollar;2&period;5 Million<&sol;span><&sol;p>&NewLine;<div id&equals;"parent-fieldname-text" class&equals;"plain">&NewLine;<p>GREENBELT&comma; MD—<strong>George Joseph Grillo<&sol;strong>&comma; age 64&comma; of Upper Marlboro&comma; Maryland pleaded guilty today to wire fraud and money laundering conspiracy arising from a scheme to make it appear that a minority business enterprise &lpar;MBE&rpar; performed work on Washington Suburban Sanitary Commission &lpar;WSSC&rpar; contracts&comma; when in fact&comma; the MBE had not performed the work&period;<&sol;p>&NewLine;<p>The guilty plea was announced by United States Attorney for the District of Maryland Rod J&period; Rosenstein&semi; Special Agent in Charge Stephen E&period; Vogt of the Federal Bureau of Investigation&semi; and Special Agent in Charge Thomas J&period; Kelly of the Internal Revenue Service—Criminal Investigation&comma; Washington&comma; D&period;C&period; Field Office&period;<&sol;p>&NewLine;<p>According to the plea agreement&comma; in 2009 and 2010 a non-minority-owned water tank painting company &lpar;Company 1&rpar; obtained three contracts with the WSSC to paint and repair water tanks or equipment&colon; the Falls Road standpipe contract&comma; the <strong>Carole Highlands tank contract and the Hampshire Green contract<&sol;strong>&period; The combined value of the three contracts was &dollar;2&comma;390&comma;177&period; Each contract required Company 1 to subcontract 28&percnt; or 29&percnt; of the contract’s value to certified MBEs or small local business enterprises&period; The required percentage of the contract&comma; which in this case totaled &dollar;679&comma;965&period;20&comma; was to be paid directly to the MBE&period;<&sol;p>&NewLine;<p>According to his plea agreement&comma; Grillo was a <strong>certified public accountant<&sol;strong> and from 2002 through 2014 was the chief financial officer of a minority business enterprise that operates as a construction company&comma; and a recycling company&period; Since the 1980’s Grillo had performed accounting work for the owner of Company 1&comma; including preparation of tax returns&comma; payroll for the company&comma; and financial statements&period;<&sol;p>&NewLine;<p><strong>Grillo admits that from 2010 to 2014&comma; he conspired with others to make it appear that Company 1 met its minority subcontracting requirements on the WSSC contracts&period;<&sol;strong><&sol;p>&NewLine;<p>For example&comma; the owner of Company 1 directed Grillo to send invoices from his minority-owned company indicating that the company had provided materials on two contracts&period; Grillo created invoices indicating that his company had provided &dollar;78&comma;000 worth of materials on the Falls Road contract and &dollar;30&comma;000 worth of materials on the Carole Highlands contract&period; As directed by the owner of Company 1&comma; these invoices were submitted to another minority subcontractor working with Company 1&period; In fact&comma; neither Grillo’s company&comma; nor the other minority-owned subcontractor had purchased any materials related to these invoices&period; To make the fake invoices appear authentic&comma; on June 30&comma; 2011&comma; a check was issued to Grillo’s company for &dollar;108&comma;000&period; On July 5&comma; 2011&comma; Grillo issued a check from his company to Company 1 for &dollar;106&comma;920&period;<&sol;p>&NewLine;<p>In 2010&comma; Grillo agreed that his company would serve as the MBE for Company 1 on the Hampshire Green contract&period; In 2011&comma; although Grillo’s company had not performed any work on the contract&comma; Grillo caused his company to submit an invoice to WSSC for 28&percnt; of the Hampshire Green contract&comma; or &dollar;57&comma;504&period;88&comma; to conceal the fact that Company 1 had not met its contractual obligation to subcontract 28&percnt; to an MBE&period; Again&comma; to make it appear that Grillo’s company had performed the work&comma; Company 1 issued a check for &dollar;57&comma;504&period;88 to Grillo’s company&comma; and a short time later&comma; Grillo’s company issued a check back to Company 1 for &dollar;58&comma;291&period;81&period;<&sol;p>&NewLine;<p>The conspiracy involved between <strong>&dollar;1 million and &dollar;2&period;5 million of laundered funds<&sol;strong>&period;<&sol;p>&NewLine;<p>Grillo faces a maximum sentence of 20 years in prison&period; <strong>U&period;S&period; District Judge George J&period; Hazel<&sol;strong> has scheduled sentencing for June 29&comma; 2015 at 10&colon;00 a&period;m&period;<&sol;p>&NewLine;<p>United States Attorney Rod J&period; Rosenstein commended the FBI and IRS-CI for their work in the investigation&period; Mr&period; Rosenstein thanked Special Assistant U&period;S&period; Attorney James I&period; Pearce and Assistant U&period;S&period; Attorney Mara Zusman Greenberg&comma; who are prosecuting the case&period;<&sol;p>&NewLine;<div id&equals;"metaslider-id-3609" style&equals;"max-width&colon; 750px&semi;" class&equals;"ml-slider-3-100-1 metaslider metaslider-flex metaslider-3609 ml-slider ms-theme-default" role&equals;"region" aria-label&equals;"Advertisers" data-height&equals;"500" data-width&equals;"750">&NewLine; <div id&equals;"metaslider&lowbar;container&lowbar;3609">&NewLine; <div id&equals;"metaslider&lowbar;3609" class&equals;"flexslider">&NewLine; <ul class&equals;'slides'>&NewLine; <li style&equals;"display&colon; block&semi; width&colon; 100&percnt;&semi;" class&equals;"slide-11695 ms-image " aria-roledescription&equals;"slide" data-date&equals;"2016-08-03 00&colon;11&colon;16"><a href&equals;"https&colon;&sol;&sol;www&period;facebook&period;com&sol;lindascafelpcity&sol;" target&equals;"&lowbar;blank" aria-label&equals;"View Slide Details" class&equals;"metaslider&lowbar;image&lowbar;link"><img src&equals;"https&colon;&sol;&sol;www&period;the-chesapeake&period;com&sol;wp-content&sol;uploads&sol;2016&sol;08&sol;Lindas-On-The-Go-side-604x403&period;jpg" height&equals;"500" width&equals;"750" alt&equals;"" class&equals;"slider-3609 slide-11695 msDefaultImage" &sol;><&sol;a><div class&equals;"caption-wrap"><div class&equals;"caption">In 2010&comma; Grillo agreed that his company would serve as the MBE for Company 1 on the Hampshire Green contract&period; In 2011&comma; although Grillo’s company had not performed any work on the contract&comma; Grillo caused his company to submit an invoice to WSSC for 28&percnt; of the Hampshire Green contract&comma; or &dollar;57&comma;504&period;88&comma; to conceal the fact that Company 1 had not met its contractual obligation to subcontract 28&percnt; to an MBE&period; Again&comma; to make it appear that Grillo’s company had performed the work&comma; Company 1 issued a check for &dollar;57&comma;504&period;88 to Grillo’s company&comma; and a short time later&comma; Grillo’s company issued a check back to Company 1 for &dollar;58&comma;291&period;81&period;<&sol;div><&sol;div><&sol;li>&NewLine; <li style&equals;"display&colon; none&semi; width&colon; 100&percnt;&semi;" class&equals;"slide-1464 ms-image " aria-roledescription&equals;"slide" data-date&equals;"2011-04-03 01&colon;26&colon;27"><a href&equals;"http&colon;&sol;&sol;allpawnandguns&period;com&sol;" target&equals;"&lowbar;blank" aria-label&equals;"View Slide Details" class&equals;"metaslider&lowbar;image&lowbar;link"><img src&equals;"https&colon;&sol;&sol;www&period;the-chesapeake&period;com&sol;wp-content&sol;uploads&sol;2011&sol;04&sol;All-Pawn-March-2011-Ches-750x500&period;jpg" height&equals;"500" width&equals;"750" alt&equals;"" class&equals;"slider-3609 slide-1464 msDefaultImage" &sol;><&sol;a><div class&equals;"caption-wrap"><div class&equals;"caption">In 2010&comma; Grillo agreed that his company would serve as the MBE for Company 1 on the Hampshire Green contract&period; In 2011&comma; although Grillo’s company had not performed any work on the contract&comma; Grillo caused his company to submit an invoice to WSSC for 28&percnt; of the Hampshire Green contract&comma; or &dollar;57&comma;504&period;88&comma; to conceal the fact that Company 1 had not met its contractual obligation to subcontract 28&percnt; to an MBE&period; Again&comma; to make it appear that Grillo’s company had performed the work&comma; Company 1 issued a check for &dollar;57&comma;504&period;88 to Grillo’s company&comma; and a short time later&comma; Grillo’s company issued a check back to Company 1 for &dollar;58&comma;291&period;81&period;<&sol;div><&sol;div><&sol;li>&NewLine; <li style&equals;"display&colon; none&semi; width&colon; 100&percnt;&semi;" class&equals;"slide-15651 ms-image " aria-roledescription&equals;"slide" data-date&equals;"2019-05-28 19&colon;45&colon;10"><a href&equals;"https&colon;&sol;&sol;read&period;amazon&period;com&sol;kp&sol;embed&quest;asin&equals;B07S8F7WF6&amp&semi;preview&equals;newtab&amp&semi;linkCode&equals;kpe&amp&semi;ref&lowbar;&equals;cm&lowbar;sw&lowbar;r&lowbar;kb&lowbar;dp&lowbar;NqC7CbPH5FBPA&amp&semi;tag&equals;stmarystodaonlin" target&equals;"&lowbar;blank" aria-label&equals;"View Slide Details" class&equals;"metaslider&lowbar;image&lowbar;link"><img src&equals;"https&colon;&sol;&sol;www&period;the-chesapeake&period;com&sol;wp-content&sol;uploads&sol;2019&sol;05&sol;MurderUSA&lowbar;AUDIO-750x500&period;jpg" height&equals;"500" width&equals;"750" alt&equals;"" class&equals;"slider-3609 slide-15651 msDefaultImage" title&equals;"boy screams opening the mouth" &sol;><&sol;a><&sol;li>&NewLine; 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