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Florida Man Defrauds Feds For $400,000

REUTERS/Carlo Allegri

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Kevin Daley Supreme Court correspondent
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A Florida resident was convicted in federal court of defrauding federal agencies for over $400,000 and now faces 35 years in prison. The case was brought by the U.S. Attorney for the Southern District of Florida.

Alexander R. Xavier of Jensen Beach, Florida fraudulently presented himself as an “individual surety” on performance and payment bonds, a form of insurance required on major government construction projects valued over $1 million. Xavier collected hundreds of thousands of dollars by way of bond fees between 2008 and 2010 from various contractors, guaranteeing over $25 million in assets in the event claims were paid out. None of the assets Xavier pledged actually existed.

Xavier frequently looked for contracts which were modified and expanded, processes which would frequently require additional bonds that Xavier himself would offer to issue, according to the Department of Justice. (RELATED: Largest Ever Medicare Fraud Scheme Busted At $1 Billion)

Xavier targeted both the U.S. Army and the Department of Labor in scams, among others, resulting in a major multi-agency investigation which included inspectors general at the U.S. Departments of State, Defense, and Housing and Urban Development, as well as the General Services Administration and the Environmental Protection Agency.

A jury convicted him of major fraud, mail fraud, and making a false statement to the Department of the Army. Sentencing is scheduled for Sept. 30.

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