Crime & Safety
Contractor For Joint Base Admits To $1.4 Million Fraud Scheme: U.S. Attorney
James Conway admitted he used his position to steer contracts to a company he secretly owned.
A Pennsylvania man employed as a regional manager for a contractor involved with construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix Lakehurst (Ft. Dix) admitted his role in a fraud scheme that caused losses of $1.4 million, U.S. Attorney Paul J. Fishman said Tuesday evening.
James Conway, 45, pleaded guilty to an information charging him with one count of wire fraud and one count of accepting unlawful kickbacks.
Conway admitted that between September of 2009 and August of 2015, secretly owned a company called Walsh Construction Services, LLC (Walsh Construction), which claimed to provide construction services.
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Conway used his position as a regional contractor to steer subcontracts to Walsh Construction for jobs at PICA and Ft. Dix, according to documents filed in the case and statements made in court.
Conway signed the subcontracts as Keith Walsh in an effort to hide the fact that he was the owner of Walsh Construction, Fishman said.
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Keith Walsh was supposed to be the vice president of the company. However, no one by that name owns or is the vice president of that company, Conway admitted.
Conway submitted invoices and bills on behalf of Walsh Construction for work purportedly performed at PICA and Ft. Dix., but the construction company either only partially performed the work or didn’t do it at all, according to Fishman.
The total loss as a result was $1.4 million.
Conway also admitting accepting kickbacks totaling $180,345. That money came from four subcontractors who worked for the contractor on various construction projects at PICA and Ft. Dix in return for favorable treatment from Conway.
The wire fraud charge to which Conway pleaded guilty carries a maximum potential penalty of 20 years in prison.
The charge for accepting unlawful kickbacks to which Conway pleaded guilty carries a maximum potential penalty of 10 years in prison.
Both charges carry a maximum fine of $250,000, or twice the gross gain or loss associated with the offense, whichever is greatest.
Sentencing is scheduled for Nov. 30.
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