Home Philadelphia Press Releases 2010 Local Businessman Charged with Theft of Federal Funds, Fraud, and Money Laundering
Info
This is archived material from the Federal Bureau of Investigation (FBI) website. It may contain outdated information and links may no longer function.

Local Businessman Charged with Theft of Federal Funds, Fraud, and Money Laundering

U.S. Attorney’s Office June 14, 2010
  • Middle District of Pennsylvania (717) 221-4482

A federal grand jury in Harrisburg has returned a multi-count indictment charging a local businessman with theft of federal funds, fraud, and money laundering in connection with his development of the now abandoned Capital View Commerce Center.

United States Attorney Dennis C. Pfannenschmidt announced that David Richard Dodd, II, 41, of Mechanicsburg, was charged in an 11-count indictment with six counts of theft of federal funds, two counts of money laundering, making false statements in connection with a loan application, and bank fraud. The indictment also seeks the forfeiture of over $1 million dollars in funds seized from a brokerage account and from Dodd’s home, as well as Dodd’s 2008 BMW and 2008 Mercedes Benz automobiles. If convicted, Dodd faces a combined maximum term of imprisonment of 160 years and fines exceeding $5 million.

According to U.S. Attorney Pfannenschmidt, the indictment charges that Dodd utilized a business known as Industrial Design and Construction, Inc. as part of the Capital View Construction Center (CVCC) to purchase pre-cast concrete forms for use in the construction of the building. Dodd is alleged to have concealed his own personal interest in IDC in violation of federal conflict of interest requirements and through that concealment wrongfully obtained over one million dollars of funds from the U.S. Department of Housing and Urban Development (HUD) through programs administered by the City of Harrisburg and Dauphin County. These funds were placed into a brokerage account at Dodd’s direction. The indictment also alleges that Dodd, in connection with the CVCC project, double-billed the Capital Region Economic Development Corporation (CREDC) and the Community Action Commission (CAC) for the same work and thereby received $147,868 in federal funds from the U.S. Department of Health and Human Services (HHS). The federal funds were provided to Dodd’s business, Advanced Communications Agency, through a program administered by CAC. According to U.S. Attorney Pfannenschmidt, the indictment also alleges that Dodd was paid $860,454.00 in HUD funds through programs administered by the City of Harrisburg and Dauphin County to pay contractors who performed and completed work on the CVCC. It is alleged, however, that although Dodd, through his business Cameron Real Estate, LP, received that money, Dodd kept the money and did not pay the contractors as he was obligated to do. All of this conduct, according to US Attorney Pfannenschmidt, underlies the various theft and money laundering charges. Dodd is also charged with making material omissions in a loan application for the refinancing of his personal residence and with defrauding then Commerce Bank by obtaining $300,000.00 on a loan draw request in December 2007, ostensibly to pay costs associated with work performed by IDC when Dodd knew that all costs associated with IDC had been paid in full by Dauphin County six months earlier. U.S. Attorney Pfannenschmidt said that more than $1 million dollars in funds in brokerage accounts established for IDC as well as the Dodd’s automobiles were seized by federal agents several months ago and are subject to forfeiture if Dodd is convicted..

U.S. Attorney Pfannenschmidt said: “The federal funds provided Dodd through the programs administered by the City of Harrisburg and Dauphin County represent every citizen’s tax dollars intended for use on specific projects fitting well-defined criteria. The public expects and the law demands that those receiving these funds be free from conflicts of interest and prohibits the personal use of these programs.”

The case was investigated by the United States Department of Housing and Urban Development’s Office of Inspector General, the Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, and the Dauphin County District Attorney’s Office of Criminal Investigation.

The investigation was supervised by Assistant United States Attorney William A. Behe who has been assigned the prosecution of the case.

An Indictment or Information is not evidence of guilt but simply a description of the charge made by the Grand Jury and/or United States Attorney against a defendant. A charged Defendant is presumed innocent until a jury returns a unanimous finding that the United States has proven the defendant’s guilt beyond a reasonable doubt or until the defendant has pled guilty to the charges.

This content has been reproduced from its original source.