Five Michigan men received federal prison sentences for taking part in a multimillion-dollar overbilling scheme on state highway construction projects.
The U.S. Attorney’s Office for the Eastern District of Michigan announced the sentences on Thursday. All five men previously served as executives at Surveying Solutions Inc. of Standish.
Andrew Semenchuk, 53, of Rives Junction, and Jeffrey Bartlett, 53, of Standish, received 15-month federal prison sentences on Tuesday after they pleaded guilty to conspiracy to defraud the United States, the district attorney’s office said.
Adam Ball, 48, of Saginaw, and Brian Bartlett, 48, of Standish, were sentenced Thursday to one year and one day in federal prison following their guilty pleas to conspiracy to defraud the United States.
Anthony Thelen, 48, of Pewamo, received a 6-month federal prison sentence Thursday after pleading guilty to conspiracy to defraud the United States.
The court ordered the men to pay $4,571,800 in restitution to the Michigan Department of Transportation, along with forfeitures totaling $4,073,200, according to the district attorney’s office.
“For nearly a decade, the defendants carried out a scheme that compromised the integrity of transportation projects in Michigan and betrayed the taxpayers who funded them,” said Anthony Licari, Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, Midwestern Region.
The district attorney’s office reported that from February 2011 to July 2019, the five men participated in a fraudulent overbilling scheme against the Michigan Department of Transportation. Their actions included submitting false and non-existent employee and technology costs, as well as inflated equipment and property lease expenses.
Federal funds through the U.S. Department of Transportation paid for nearly all of the contracts.
As part of a non-prosecution agreement, Surveying Solutions Inc. took part in a compliance program and paid a $1.1 million penalty. The district attorney’s office noted that the company cooperated with federal agencies throughout the investigation.
The Federal Bureau of Investigation and the U.S. Department of Transportation handled the investigation.
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