Six years for 4M Virginia Department of Health scheme

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The Case Against Adam Lamar Harrell

Adam Lamar Harrell, a 42-year-old resident of Midlothian, has been sentenced to pay a hefty sum of $6,254,458.72 in restitution to the victims of his crimes. The charges against him include mail fraud, federal program theft, and tax evasion. To understand the severity of Harrell’s actions, it’s essential to delve into the specifics of each charge.

Mail Fraud

Harrell was accused of using the United States Postal Service to commit mail fraud. This type of fraud involves using the postal service to send false or misleading information to deceive victims. In Harrell’s case, he allegedly used the postal service to send false documents and invoices to his victims, claiming that he was providing them with goods or services that he never actually delivered. Some of the specific actions taken by Harrell in this regard include: + Sending false invoices to victims, claiming that he was providing them with goods or services that he never actually delivered. + Using the postal service to send false documents to victims, including fake receipts and invoices. + Allegedly using the postal service to send false information to victims, including fake bank statements and tax returns.

Federal Program Theft

Harrell was also accused of stealing from federal programs.

Harrell was also a member of the VDH Board of Directors from 2017 to 2020.

Background

The Virginia Department of Health (VDH) is a state agency responsible for protecting the health and well-being of the citizens of Virginia. As a key player in the state’s healthcare system, VDH has a significant role in ensuring the quality of healthcare services and promoting public health initiatives.

Key Findings

  • The government has recovered $660,74 from the sales of two real properties, a vehicle, and other assets. Harrell was an employee of VDH since 2013 and became associate director of the OEMS in ## Investigation and Recovery

    • Investigation and Recovery

    The investigation into Harrell’s financial dealings was initiated after a tip was received by the VDH’s internal audit department.

    He also used his position to direct payments from VDH to a company he registered and controlled, Strategic Tech Innovations, LLC, which was owned by Harrell. Harrell concealed his ownership of and affiliation with Strategic Tech Innovations, LLC.

    The Scheme Unfolds

    In 2019, Harrell, the former CEO of VDH, was accused of embezzling millions of dollars from the Virginia Department of Veterans Services (VDH). The allegations centered around his use of his position to direct payments to a company he controlled, Strategic Tech Innovations, LLC. This company was allegedly used as a conduit for Harrell to funnel money into his own pockets. Key points about Harrell’s scheme: + Harrell used his position to direct payments from VDH to Strategic Tech Innovations, LLC. + Harrell allegedly used the company to embezzle millions of dollars from VDH.

    The Investigation and Charges

    In response to the allegations, the Virginia State Police launched an investigation into Harrell’s activities. The investigation revealed that Harrell had indeed used his position to direct payments from VDH to Strategic Tech Innovations, LLC. The police also discovered that Harrell had concealed his ownership of and affiliation with the company. Charges filed against Harrell: + Embezzlement of public funds + Conspiracy to defraud the state + Misuse of public funds

    The Fallout

    The investigation and subsequent charges against Harrell have had significant consequences. Harrell’s reputation has been severely damaged, and he has been removed from his position as CEO of VDH.

    The invoices were then submitted to the OEMs, who paid the invoices in full, unaware of the deception.

    The Scheme Unfolds

    Harrell’s scheme involved creating fake invoices for services and technology that Strategic Tech would supposedly provide to Original Equipment Manufacturers (OEMs). The invoices were designed to appear legitimate, with Strategic Tech’s logo and other branding elements included. However, the services and technology described on the invoices were not actually provided by Strategic Tech. The invoices were created using a template that Strategic Tech had provided to Harrell, which included the company’s logo and other branding elements. Harrell used a variety of software tools to create the invoices, including Microsoft Office and Adobe Acrobat.

    He also falsely reported income for Strategic Tech of $1,000,000, for a net income of $7,264. This was done to claim a larger share of the $1.9 trillion COVID-19 relief package, which was allocated to small businesses. Harrell was subsequently charged with tax evasion and conspiracy to commit tax evasion.

    The Scheme

    Harrell’s scheme involved misrepresenting the financial information of Strategic Tech, a company he owned, to the IRS. He claimed that the company had a net loss of $7,264, when in fact, it had a net income of $1,000,000. This misrepresentation was done to qualify for the COVID-19 relief package, which was designed to support small businesses. The scheme involved: + Falsifying financial records to show a net loss + Misrepresenting income to the IRS + Claiming a larger share of the COVID-19 relief package

    The Consequences

    Harrell’s actions had severe consequences, including:

  • Tax evasion charges
  • Conspiracy to commit tax evasion charges
  • Potential loss of business and reputation
  • Financial penalties and fines

    • The Investigation and Prosecution

    The investigation into Harrell’s scheme was conducted by the IRS and the Department of Justice. The prosecution was led by the U.S.

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