An ex-government contractor was sentenced to nearly 5 years in prison for a scheme that defrauded at least 35 sub-contractors located across the United States.
According to a media release on February 10, 2020 U.S. District Judge Dale A. Drozd sentenced Chester L. Neal Jr. age 45, of Bourbon Oak, Missouri to serve 57 months in prison and pay a restitution in the amount of $3,734,927.50
Neal Jr. had established and controlled several companies through which he used to bid on and win at least 105 government contracts. The contracts he procured were to provide goods and services to federal agencies including the U.S. Army, the Department of Interior and the U.S. Air force. The Contracts required Neal Jr. to arrange for the purchase and transport of rock, gravel, and other raw materials to military bases and national parks throughout the United States.
After winning the Government contracts, Neal would hire subcontractors to perform the required Work, but when Neal was paid by the government for the contracts, he kept all the money and never paid the subcontractors for their work. Instead Neal took lavish trips and spent the money at casinos, nightclubs, restaurants and hotels. In total, from July 2008 to December 2017 Neal defrauded his subcontractors out of approximately $3.7 million