Army veteran indicted in $40 million government contract fraud
By MARK DAVIS | The Kansas City Star (Tribune News Service) | Published: December 2, 2017
A federal grand jury has indicted a U.S. veteran in Belton, partially disabled in service to his country, on charges tied to a $40 million government contract fraud.
Joseph David Dial Jr., 52, faces charges tied to the contract obtained through a program for service-disabled veteran-owned small businesses. The 18-page indictment describes a scheme that involved others but does not identify them by name.
Dial formed United Medical Design Builders LLC with another person in 2008, said an announcement by U.S. Attorney General Tom Beall, but the business was not legitimately eligible to win the contract.
United Medical Design Builders received the contract from the U.S. Army Corps of Engineers. The contract involved designing and building healthcare facilities at several Air Force bases.
According to the indictment, Dial served three years of active duty in the U.S. Army, two years in the U.S. Army Reserves and three years in the Missouri National Guard. The U.S. Department of Veterans Affairs also had classified Dial as having a “30 percent disability rating” tied to his service, it said.
The indictment said Dial was running “a subcontract project” at Fairchild Air Force Base in Spokane, Wash., about the time that “Person A attended a meeting and announced that United Medical Design Builders was forming to seek disabled veteran construction set-aside projects. Person A also asked if anyone knew of a disabled veteran they could use.”
In pursuing contracts under the program, a service-disabled person would have to own at least 51 percent of the business, control the management and daily operation of the business and hold the highest officer position at the business, the indictment said.
Dial and United Medical, according to the grand jury’s findings, fraudulently claimed status as a service-disabled veteran-owned small business to win the work.
Beall’s announcement said Dial “unlawfully devised a scheme to defraud” the government between August 2008 and September 2015 “by means of material false and fraudulent pretenses.”
If convicted, Dial faces up to 10 years in federal prison on each count of defrauding the government and up to 20 years on each count of wire fraud, the announcement said. The government also seeks fines and forfeiture equal to the proceeds gained through the acts outlined in the indictment.
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