Federal Contractor Indicted for Wire Fraud in Connection with Government Contracts

Strategic Insights -

Arthur Morgan, a 67-year-old resident of Lorton, Virginia, has been charged with federal wire fraud charges in connection with contracts to provide helmets, body armor, and other items to military and federal entities. Morgan allegedly falsely certified that products sold to federal agencies were manufactured in designated countries, specifically Hong Kong and the United States, when in fact they were manufactured in China. The indictment alleges that Morgan knowingly provided products sourced from China in violation of the Trade Agreements Act (TAA) and the contract, resulting in the federal government paying SEG at least approximately $658,866.92 for the products between 2014 and 2019.

Key Takeaways:

  • Arthur Morgan, 67, of Lorton, Virginia, has been indicted for federal wire fraud charges in connection with contracts to provide helmets, body armor, and other items to military and federal entities.
  • Morgan allegedly falsely certified that products sold to federal agencies were manufactured in designated countries, specifically Hong Kong and the United States, when in fact they were manufactured in China.
  • The indictment alleges that Morgan knowingly provided products sourced from China in violation of the Trade Agreements Act (TAA) and the contract.
  • SEG received multiple federal government orders under the contract between 2003 and 2019, with at least 11 orders placed by six federal government agencies between September 15, 2014, and August 29, 2019.
  • The federal government paid SEG at least approximately $658,866.92 for the products during this period.
  • Morgan faces a maximum sentence of 20 years in federal prison for each of two counts of wire fraud if convicted.
  • An indictment is not a finding of guilt, and Morgan is presumed innocent unless proven guilty at a later criminal proceeding.

Statistics:

  • $658,866.92: approximate amount paid by the federal government to SEG for the products between 2014 and 2019.
  • 11: number of orders placed by six federal government agencies with SEG between September 15, 2014, and August 29, 2019.
  • 20 years: maximum sentence for each of two counts of wire fraud.
  • 2003-2019: period during which SEG received multiple federal government orders under the contract.

Sources:

  • "Arthur Morgan indicted for wire fraud in connection with government contracts". Federal Bureau of Investigation.