Feds allege Midlands contractor, associates, defrauded government of $330 million

Federal prosecutors have indicted seven Columbia area men and women and two corporations, alleging that for years they illegally won some $330 million in government contracts by falsely representing themselves as companies controlled by either low-income men and women or disabled veterans.

An indictment in the case charges that Jerry Eddins, Thomas Brock, Harry Michael White, Cory Adams, Tory Brock, Alfonza McCutchen Jr. and Alison Amanda Sauls secretly set up an interlocking set of businesses and conspired to defraud the federal government by falsely representing their eligibility to get government contracts.

They also identified, created and recruited “businesses owned by qualifying minorities, women, veterans and disabled veterans” and “hid their roles in the companies from the Small Business Administration and the Veterans Administration,” the indictment said.

The conspiracy began in 2002 and lasted for years, the indictment states. Most of the defendants were in federal court Tuesday.

Under federal law, the Small Business Administration awards contracts to recipients who are economically disadvantaged, female and/or minority businesses. The Veterans Administration oversees programs to award contracts to businesses run by disabled veterans.

Eddins was the owner of several construction companies, Thomas Brock was Eddins’ associate and White was an accountant and financial adviser to Eddins and Thomas Brock, according to the indictment.

Tory Brock, whose relation to Thomas Brock is not clear in the indictment, won contracts with the government after certifying companies she controlled he were eligible to get contracts under rules favoring companies controlled by disabled veterans and economically disadvantaged women, the indictment alleges.

McCutchen won SBA contracts after certifying he qualified as a “socially and economically disadvantaged person” and that he controlled a general contracting and landscaping company, the indictment states.

Thomas Brock, Eddins, White, Adams, Tory Brock and McCutchen fraudulently secured federal contracts “when they were not eligible to obtain those contracts,” the indictment states.

The defendants were arraigned Tuesday morning at the federal courthouse in Columbia before Magistrate Judge Shiva Hodges. She released all of the on their promise to show up for future court appearances.

Defendants who appeared in court Tuesday were each represented by well-known criminal defense lawyers.

Eddins was represented by former U.S. Attorney Bart Daniel,White was represented by former assistant U.S. Attorney Joel Collins, Adams was represented by former S.C. Rep. I.S. Leevy-Johnson, and McCutcheon was represented by Joe McCulloch.

Tory Brock, who was not in court, is represented by former assistant U.S. Attorney Mark Moore. Sauls was not in court Tuesday. Court records do not list her lawyer.

This story was originally published August 2, 2016 at 5:03 PM with the headline "Feds allege Midlands contractor, associates, defrauded government of $330 million."