Former Navy Contractor Pleads Guilty to False Statement Charges

HARRISBURG, Pa. -- Federal attorneys say a former U.S. Navy contractor from central Pennsylvania has admitted under a plea deal to giving false statements after he defrauded subcontractors out of more than $1.2 million.

Pennlive.com reports that prosecutors say Andrew Persaud pleaded guilty on Tuesday to submitting a false statement in connection with a 2011 contract to renovate warehouses at the Naval Support Activity Center.

Prosecutors say the 43-year-old Mt. Holly Springs man swindled more than $1.2 million in payments meant to pay 17 subcontractors involved in the Mechanicsburg project.

The Navy terminated the contract after discovering the subcontractors weren't paid and most had walked off the job.

Persaud has agreed to pay $1.2 million in restitution and forfeit the prior $1.2 million payment. He faces up to five years in prison.

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Navy Crime