Federal Grand Jury Indicts Maryland Man for Wire Fraud, False Claims, and Aggravated Identity Theft in Connection with Federal Contracts

Strategic Insights -

Cory Collin Fitzgerald Sanders, age 39, of Hagerstown, Maryland, has been indicted on federal charges of wire fraud, false claims, and aggravated identity theft in connection with his companies' performance on federal contracts. According to the indictment, Sanders formed Sandtech LLC in June 2014 to sell video teleconference equipment to the Department of Defense and other federal agencies. Sanders caused Sandtech to fail to perform on contracts with the U.S. Department of Labor and the Department of the Army, which terminated the Sandtech contracts for cause. Sanders then formed Cycorp Technologies in 2016 to provide the same type of telecommunication services as Sandtech. The indictment alleges that Sanders engaged in a scheme to defraud the government by providing false information about the delivery, source, warranty, and/or condition of electronic equipment provided by his companies.

Key Takeaways:

  • Sanders formed Sandtech LLC in June 2014 to sell video teleconference equipment to federal agencies.
  • Sanders caused Sandtech to fail to perform on contracts with the U.S. Department of Labor and the Department of the Army.
  • Sanders formed Cycorp Technologies in 2016 to provide the same type of telecommunication services as Sandtech.
  • The indictment alleges that Sanders engaged in a scheme to defraud the government by providing false information about the delivery, source, warranty, and/or condition of electronic equipment provided by his companies.
  • Sanders provided false information and false documents about the credentials, certifications, and qualifications of Cycorp Technologies.
  • Sanders allegedly submitted invoices on behalf of Sandtech and Cycorp Technologies so that contracting government agencies would pay for deficient or non-existent performance.
  • Sanders faces a maximum sentence of 20 years in federal prison for each of nine counts of wire fraud, a maximum of five years in federal prison for each of two counts of false claims, and a mandatory two years in federal prison for aggravated identity theft.

Statistics:

  • Nine counts of wire fraud: each carries a maximum sentence of 20 years in federal prison.
  • Two counts of false claims: each carries a maximum sentence of five years in federal prison.
  • One count of aggravated identity theft: carries a mandatory two years in federal prison.

Sources:

  • "Federal Grand Jury Indicts Maryland Man for Wire Fraud, False Claims, and Aggravated Identity Theft in Connection with Federal Contracts." United States Attorney's Office for the District of Maryland, July 8, 2020.
  • "National Criminal Investigation Service." Naval Criminal Investigative Service.
  • "The Office of Inspector General." U.S. Department of Labor.