Defense contractors sentenced

A federal judge in Kansas City today sentenced three people for a $1 million scheme to defraud the Army.

Virgie Dillard, 71, of Lee’s Summit, owner of Missouri Office Systems and Supplies Inc., her employee Roland Evans, 45, of Lee’s Summit, and Mark Morgan, 47, of Newport Coast, Calif., pleaded guilty previously to their roles in conspiracy to commit wire fraud.

From a press release by federal prosecutors:

Dillard’s office supply company in Kansas City in 2010 got a $2.1 million contract from the Army for more than 2,500 Cisco parts, and it shipped parts to about 20 Army locations nationwide.

But it shipped more than $1 million worth of counterfeit products and Cisco products that were used and modified, products obtained outside authorized Cisco distribution channels.

Because the Cisco products were not properly obtained, they were not eligible for warranties, violated contracts and could not be used by the Army.

Evans was involved in all the contracts and drew the harshest sentence, 37 years in prison without parole.

Dillard was sentenced to five years probation and Morgan to 30 months in federal prison.

They are also all liable to pay more than $1 million in restitution to the Army.

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