Two Individuals Plead Guilty in Conspiracy to Defraud Over Ten Federal Agencies
Garrahan and Spillman each pled guilty, before U.S. District Judge
According to court documents, from approximately
Individual surety bonds require collateral. The collateral used was land or cash or cash equivalent assets held in bank accounts. However, Garrahan and Spillman knew that the claims of ownership of land and the claims of possessing funds were false. In addition, the supporting documents related to these assets were fraudulent.
Garrahan and Spillman also knew that a co-conspirator, who was directing them, had a prior fraud conviction. They also knew that this was the reason his name was not included in any of the paperwork.
Garrahan, Spillman and their co-conspirators issued a large number of bonds dealing with over 100 contractors and at least 15 federal agencies, and other entities. Often contracts had "modifications," that is, contract expansions, that led to more bonds being issued.
Over ten federal agencies reimbursed contractors over
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Related court documents and information may be found on the website of the



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