Former Construction Site Manager Indicted in Connection with Kickback Scheme
|U.S. Attorney’s Office August 04, 2011|
United States Attorney John E. Murphy announced that a federal grand jury has charged 46-year-old Carl James Woodruff, former onsite construction manager for the Midland-based architecture and engineering firm of Grimes and Associates (Grimes), in a mail fraud scheme involving more than $200,000 in kickbacks from subcontractors.
The indictment, returned on July 27, 2011 and unsealed yesterday, alleges that from the Spring of 2009 until February 2010, Woodruff committed mail fraud and denied Grimes and two Texas school districts honest services by accepting kickbacks while overseeing construction projects, namely the construction of a new high school gymnasium for the Grady Independent School District and renovations of various school buildings for the Reagan County Independent School District. The indictment further alleges that Woodruff falsely and materially maintained to the school districts that all expenses set forth in the invoices were reasonable and necessary for the completion of the projects, when in fact they were purposely inflated to provide funds to the subcontractors adequate to cover the planned kickbacks to Woodruff. Finally, the indictment alleges that Woodruff used the kickbacks to purchase a new home as well as to cover the expenses for carpentry and excavation work at his new residence.
Woodruff, who is on bond pending trial, is charged with one count of conspiracy, five counts of mail fraud and three counts of money laundering. Upon conviction, Woodruff faces up to 20 years in federal prison per count.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This investigation was conducted by agents from the Federal Bureau of Investigation. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.