Two Kansas City-area men are charged with defrauding a government program for veteran-owned businesses out of more than $13 million.
Jeffrey K. Wilson, 51, of the Village of Loch Lloyd in Cass County, and Paul R. Salavitch, 56, of Kansas City, were charged in an eight-count indictment returned Friday by a federal grand jury in Kansas City.
A Kansas City company, Patriot Company Inc., was also charged in the indictment.
Wilson, Salavitch and Patriot allegedly conspired to fraudulently obtain about $13.8 million in federal government construction contracts for projects in nine states, according to the indictment.
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The contracts were supposed to go to legitimate veteran-owned or service-disabled, veteran-owned small businesses.
According to the indictment, Patriot was a front company for a construction company owned by Wilson.
Salavitch was a service-disabled veteran who worked full-time as a federal employee with the U.S. Department of Defense in Leavenworth.
He “nominally” served as president of Patriot but was not involved in the company’s day-to-day management or decision-making, and he had limited government contracting experience, according to the indictment.
The government is seeking to forfeit property purchased from the proceeds of the alleged fraud scheme, including $2.1 million that has been seized from bank accounts as well Wilson’s homes in Cass County and Mesa, Ariz.