Federal Judge Rules That Local Businessman is Liable for More Than $20 Million in Restitution
|U.S. Attorney’s Office October 18, 2013|
The United States Attorney’s Office for the Middle District of Pennsylvania announced that U.S. District Court Judge Sylvia H. Rambo ruled in favor of the government on its request for restitution in the case against developer David R. Dodd, II.
In her 37-page opinion filed on October 15, Judge Rambo awarded $20,943,635.13 in restitution as follows:
- H&R Mechanical, $1,255,468.62
- Weaver Glass, $594,890.00
- Stone Fire Protection, $308,755.40
- Scheadler Yesco, $390,767.05
- Stewart-Amos Steel, $622,146.52
- Ciesco, $118,218.11
- Macri Concrete, $323,057.70
- H.W. Nauman, $31,672.47
- Herre Brothers Inc., $1,265,237.50
- Metro Bank, $9,489,864.88
- Dauphin County, $2,752,450.64
- City of Harrisburg, $3,512,777.70
- City of Harrisburg, $308,328.54
Judge Rambo concluded that Dodd was responsible for the projects demise and the loss to the contractors.
According to United States Attorney Peter J. Smith, Dodd was charged in two separate indictments returned by federal grand juries in June 2010 and January 2011, both involving fraudulent real estate and business deals associated with the Capital View Commerce Center (CVCC).
Dodd utilized a business known as Industrial Design and Construction Inc. (IDC) as part of the Capital View Commerce Center (CVCC) project to purchase pre-cast concrete forms for use in the construction of the building.
Dodd 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 HUD through programs administered by the city of Harrisburg and Dauphin County. These funds were placed into a brokerage account at Dodd’s direction to conceal the existence and ownership of the misappropriated funds.
Dodd was also paid $860,454 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 project. 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.
Dodd pleaded guilty in November 2011 to misappropriation of funds and money laundering based on this conduct. The second indictment will be dismissed as part of the plea agreement, but the court can consider the conduct underlying the dismissed charges when arriving at an appropriate sentence. A sentencing date has not been scheduled.
The joint investigation was conducted by the HUD’s Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation, and the Dauphin County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney William A. Behe. Support is being provided by the U.S. Attorney’s Office Victim Rights and Asset Recovery Unit.