On Friday, December 1, 2017, it was announced that a Fayetteville, North Carolina defense contractor had been sentenced to prison for his involvement in multiple conspiracies to overbill the federal government by more than $15 million on government contracts. 48-year-old Philip A. Mearing was sentenced to five years in prison. Mearing was the owner of Global Services Corporation.
In 2004, Mearing and co-conspirators, Kenneth Bricker and Ken Deines, entered in an agreement in which fraudulent payments were sent from Global to Bricker’s two straw corporations, BPM and Tempo. The agreement involved hundreds of invoices for work and services on behalf of Global that were never performed by the two straw corporations.
As a part of the agreement, Mearing consented that Bricker would normally retain five percent of the fraudulent payments made by Global Services Corporation to BPM and Tempo. A short time after the payments were made, Bricker transferred the remaining 95 percent to Mearing and DeShas, which was a Ohio LLC controlled by Mearing.
Between 2004 and 2014, Bricker received roughly $13.6 million in fraudulent payments. He retained roughly $558,000 for his own personal use and issued checks totally approximately $13 million to Mearing and DeShas. In a separate conspiracy to defraud the government, Mearing, Deines and William Hutsenpiller, conspired to submit false claims to the government via false and/or fictitious invoices. Hutsenpiller formerly served as the Comptroller for Norfolk Ship Support Activity.
The conspiracy ultimately resulted in a loss of roughly $1.8 million. The court concluded that the government’s total loss was over $15 million. The court will hold a hearing to settle forfeiture and restitution on December 12. Again, 48-year-old Philip A. Mearing was sentenced to five years in prison. Additional details can be found here.