KLM Loss Prevention owner pleads guilty in fraud www.privateofficer.com
McAfee pled guilty to 16 counts of making a false statement, 15 counts of mail fraud, three counts of wire fraud, and three counts of falsifying records in a federal investigation. McAfee faces five years’ imprisonment on each of the 15 false statement charges, a fine of up to $250,000, and three years’ supervised release. He faces 20 years’ imprisonment on each of the mail fraud, wire fraud, and falsification charges, a fine of up to $250,000, and five years’ supervised release. McAfee admitted to a scheme in which he falsified records claiming to pay more money to his employees than he was actually paying under contracts with School District 189 and the East St. Louis Housing Authority, which allowed McAfee to fraudulently retain money due to his employees. He also admitted that, following a Department of Labor investigation that found that McAfee underpaid his employees for overtime, McAfee failed to pay back due wages but provided false records purporting to show that he had paid his employees the back due wages. As part of the plea agreement, McAfee must make restitution to his employees for wages that are owed.
“Employers who abuse federally-subsidized contracts can expect to be investigated and prosecuted.” said United States Attorney Wigginton. “Falsifying records and cheating employees, especially those from financially disadvantaged areas such as East St. Louis, will not be tolerated.”
McAfee also pled guilty to a separate charge of making a false statement within the jurisdiction of the executive branch of the United States. This additional charge carries a sentence of imprisonment of up to five years, a fine of $250,000 and up to three years’ supervised release. McAfee was investigated by the Federal Bureau of Investigation for potential violations of civil rights following an incident in which McAfee shot into a vehicle occupied by two men who had stopped at the BP Gas Station at Exit 6 in Washington Park. The men were placed in the Washington Park jail for almost 24 hours and then released without charges. McAfee explained to agents that he believed that he had observed a hand-to-hand drug transaction and that he ordered the driver of the vehicle to stop. McAfee also said that he feared for the safety of pedestrians in front of the vehicle so he fired into the vehicle in an effort to convince the driver to stop. McAfee failed to follow protocol and did not inform his chief that he had discharged his firearm and did not complete a report of the incident. When further questioned by agents, McAfee provided false statements, including claims that he had informed his chief of the shooting and that he had completed a firearms discharge report. The occupants of the vehicle denied any drug transaction, no illegal drugs were ever found on the occupants or in the vehicle, and no case was ever submitted for prosecution by McAfee. As part of the plea agreement, McAfee must pay restitution to the shooting victim for damage to his vehicle and tow and impound fees. As further part of this plea agreement, McAfee may never work as a police officer again.
“We entrust our sworn police officers to protect citizens and safeguard their rights.” said United States Attorney Wigginton. “Officers must use deadly force only when appropriate and must tell the truth when their actions are investigated. This charge to which Mr. McAfee has pled guilty shows that we will hold all police officers, regardless of where they work, to the high standards that the public deserves.”
Sentencing has been set for December 9, 2011 at 1:30 p.m. before the Honorable William D. Stiehl.
The prosecution of this case follows an investigation by the U.S. Department of Labor, Office of Inspector General-Office of Labor Racketeering and Fraud Investigations, the U.S. Department of Housing and Urban Development, Office of Inspector General, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Kevin F. Burke.
Source:FBI PRESS RELEASE