Patrick J. Large, the owner of Boise-based Quality Tile and Roofing, Inc., pleaded guilty Tuesday to one count of wire fraud for defrauding a government agency. The 62-year-old Large, who lives in Meridian, also agreed to forfeit $150,000 to the federal government, according to U.S. Department of Justice reports.
Federal prosecutors will recommend that Large be put on probation, if he is eligible for probation under the federal sentencing guidelines, according to court documents filed in connection with the case.
The plea agreement between prosecutors and Large also says if Chief U.S. District Judge B. Lynn Winmill rejects the plea agreement and determines that a period of incarceration is appropriate, Large can withdraw his guilty plea at that point.
A press release issued by the U.S. Department of Justice Wednesday said Large faced up to 20 years in prison, a maximum fine of $250,000 for the wire fraud charge but the release did not have any information about the plea agreement where prosecutors were planning to recommend probation.
The plea agreement also says if Large pays $150,000 in forfeiture, he will not have to pay any fine in connection with the case.
A sentencing hearing is set for Jan. 8 in front of Winmill.
According to court documents, Large orchestrated a scheme to defraud federal agencies by falsely representing that the company had two employees residing in a HUB Zone. The HUB Zone Program encourages economic development in historically underutilized business zones through the establishment of preferences in federal contracting opportunities.
Federal prosecutors said Wednesday the government awarded a contract to a company controlled by Large that it was not otherwise entitled to receive.
Large, who lives in Meridian, was indicted by a federal grand jury in Boise in February and eventually charged with 14 counts of wire fraud, mail fraud, false statements and money laundering.
According to the plea agreement, Large submitted an application on July 27, 2005, to the U.S. Small Business Administration (SBA) that represented that the principal place of business of McDonald Roofing and Construction, Inc. (MRC) was located in Emmett, Idaho, and that it had two employees at this location.
Large made these representations in submissions to the government. By doing so, MRC was able to obtain a contract awarded by the government for qualified HUB Zone entities.
Large admitted that the representations were false because the business did not have at least two employees residing in the HUBZone.
In June 2007, the United States Department of Interior (DO I) awarded a $218,241 contract to MRC for seismic mitigation work to be performed at the National Interagency Fire Center (NIFC) in Boise. DOl awarded MRC the contract on the basis that it was a HUBZone qualified entity. On December 21, 2007, MRC received a payment from the government of approximately $219,287.
In two related cases, Construction Service Corporation, Inc. (CSC) and McDonald Roofing and Construction, Inc., of Boise, were each sentenced in June 2012 to three years of probation. CSC was fined $65,000 for wire fraud and making a false statement to the government. McDonald Roofing and Construction was fined $5,000 for fraud related to government contracting.
According to court documents, CSC defrauded the United States Department of Agriculture on a $274,283 contract for roofing work to be performed at a research facility in Corvallis, Oregon.
CSC admitted that it made false statements to the SBA concerning its eligibility for HUBZone contracts.
CSC also pleaded guilty to defrauding the U.S. General Services Administration in relation to the Federal Surplus Property Program. As an entity qualified under the SBA's 8(a) program, CSC was eligible to acquire federal surplus equipment. The corporation admitted to transferring surplus property to an individual who was not eligible to acquire surplus property.
McDonald Roofing and Construction, Inc. pleaded guilty to defrauding the United States Department of Interior on a $218,241 contract for work to be performed at the National Interagency Fire Center (NIFC) in Boise, Idaho. According to court documents, McDonald Roofing Corporation admitted that it made false statements to the SBA concerning its eligibility for the contract.