FORT SMITH -- A Virginia man who billed the nursing home company Golden Living for construction and renovation work never performed has pleaded guilty in federal court to charges of mail fraud and money laundering.
Gary E. Jewel, 61, of Ruther Glen, Va., pleaded guilty before U.S. District Judge P.K. Holmes III on Wednesday to two counts of wire mail fraud and one count of money laundering.
He has been in federal custody ever since his arrest in Virginia in February, according to court records.
As part of a plea agreement he signed with the government, Jewel will forfeit $372,980.55 in cash along with property, including 2002 and 2005 Chevrolet Corvettes and two Sea Doo personal watercraft.
A news release from the U.S. attorney's office said Jewel was hired by Golden Living in February 2010 as a senior construction project manager. His duties included overseeing construction and remodeling jobs at Golden Living properties throughout the United States.
According to court records, Jewel was to approve subcontractor invoices for work performed on the Golden Living projects and submit them to the Fort Smith office for payment. The Fort Smith office is an administrative office that receives and processes invoices from contractors and subcontractors who work at and for Golden Living properties nationwide, and issues checks in payment, according to the plea agreement.
The news release said Jewel set up a company, Legacy Consulting LLC, through which he sent invoices to Golden Living for payment for work that was never performed by Legacy or by fictitious subcontractors working for Legacy.
Such fictitious subcontractors included Palmer Plumbing in Bessemer, Ala.; Ready Mix Concrete in Thomaston, Ga.; and Wood Brothers Construction Supply in Oxford, Ala., the plea agreement stated.
Jewel faces a maximum of 20 years in prison and a maximum fine of $250,000 on each mail fraud count, and up to 10 years in prison and a fine of up to $250,000 on the money laundering count.
A sentencing date will be set after the completion of a pre-sentence investigation by the court's probation office.
NW News on 07/01/2016