PITTSBURGH, PA — Two South Carolina residents, previously from Pittsburgh, Pennsylvania, have admitted to executing a significant fraud scheme against the United States. Edward DiGorio Jr., 65, and Edward Kessler, 68, pleaded guilty to two counts before United States District Judge William S. Stickman IV.
United States Attorney Eric G. Olshan announced the pleas on Friday, which stem from a complex ‘Rent-A-Vet’ scheme. DiGorio and Kessler, owners of ADDVETCO, Inc., and Hi-Def Contracting, Inc., exploited contracts set aside by the United States Department of Veterans Affairs (VA) for small businesses owned and operated by service-disabled veterans.
Despite neither man having served in the military or being service-disabled, they paid service-disabled veterans to falsely claim ownership and operation of the two companies. They further misled the VA by submitting false documents as part of the Service-Disabled Veteran-Owned Businesses (SDVOBs) certification process.
Between 2007 and 2018, ADDVETCO and Hi-Def were awarded 67 contracts intended for SDVOBs, with 50 of these worth $1 million or more. The charges to which DiGorio and Kessler pleaded guilty relate to the two most recent contracts that netted them over $400,000 in profits.
The duo now awaits sentencing on July 11, 2024. They face up to 10 years in prison, a fine of up to $1 million, or both, for each count. The actual sentence will depend on the seriousness of the offenses and any prior criminal history.
This case was prosecuted by Assistant United States Attorney Carolyn J. Bloch, following an investigation by the Federal Bureau of Investigation and the U.S. Department of Veterans Affairs Office of Inspector General.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.