Swansea man gets 2 years in prison for massive federal construction fraud scheme

A federal judge Thursday gave a Swansea businessman two years in federal prison for his part in a massive fraud scheme that won him and others “hundreds of millions of dollars” in government contracts they shouldn’t have received.

Jerry Eddins, 67, a contractor and lender, entered a guilty plea to criminal conspiracy Thursday. He will report to federal prison later this fall.

As he stood before U.S. Judge Michelle Childs, Eddins – whom Childs called an “organizer and leader” of the conspiracy – declined to comment.

But after the Columbia court hearing, Eddins and his attorneys, Bart Daniel and Heath Taylor, said they wanted the public to know that all the work on the government contracts was, in fact, done.

“All work was completed on time, and they got performance awards,” Daniel said.

The crime wasn’t about the work.

Instead, prosecutors alleged Eddins and six others set up construction companies with sham leaders to take advantage of federal programs intended to award government contracts to disadvantaged business people. The programs were intended to benefit businesses owned by veterans, African-Americans and low-income women, according to assistant U.S. Attorney DeWayne Pearson.

The conspirators said the companies they created were controlled by minorities, allowing Eddins and his fellow defendants to win contracts that others should have won.

Many of the unlawfully obtained contracts – perhaps more than 100 over a dozen years – were for work at military bases in the Carolinas, South Carolina’s Savannah River Site and elsewhere in the Southeast.

Childs also levied a $500,000 fine on EEC, one of Eddins’ limited liability companies, involved in the scheme.

Three others in the conspiracy also pleaded guilty Thursday and will be sentenced at a later date.

They are:

▪ Cory Adams, 44, of Columbia, who pleaded guilty to concealing a crime from authorities

▪ Tory Brock, 52, of Camden, who also pleaded guilty to concealing a crime

▪ Harry Michael White, 56, of Columbia, who pleaded guilty to making false statements to the Small Business Administration.

Others also face charge in connection with the scheme – Thomas Brock, 50 of Camden; Alfonza McCutchen Jr., 40, of Irmo; and Allison Amanda Sauls, 47, of New York City.

The scheme to set up businesses with phony minority ownership began in 2002 and lasted more than a dozen years, according to an indictment in the case.

Investigators from several federal agencies worked on the case, including the Departments of Defense, Energy and Agriculture; the U.S. Army’s Criminal Investigative Division; the Veterans Administration; and the Small Business Administration.

This story was originally published October 26, 2017 at 6:19 PM with the headline "Swansea man gets 2 years in prison for massive federal construction fraud scheme."