Local Businessman Sentenced to 87 Months for Misappropration of Federal Funds, Fraud, and Money Laundering
|U.S. Attorney’s Office February 27, 2014|
The United States Attorney’s Office for the Middle District of Pennsylvania announced that today, Senior U.S. District Court Judge Sylvia H. Rambo today sentenced David R. Dodd, II, age 45, of Mechanicsburg, Pennsylvania, to 87 months’ imprisonment for misappropriation of federal funds and money laundering.
Dodd was also ordered to pay restitution totally approximately $21 million to suppliers, sub-contractors, Metro Bank, the city of Harrisburg, and Dauphin County.
Assistant U.S. Attorney William A. Behe told the court that Dodd’s conduct reflected far more than bad judgment. It contained false statements, hidden conflicts of interest, and repeated deceptive acts. Senior Judge Rambo agreed to the government’s request that Dodd be taken into custody by U.S. Marshals immediately after the sentencing.
According to United States Attorney Peter Smith, Dodd pleaded guilty in November 2011. He 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), a failed construction project in Harrisburg.
Dodd utilized a business he owned 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.
After five days of hearings to establish the amount of the loss resulting from Dodd’s conduct, Judge Rambo filed a 37-page opinion on October 15, 2013, awarding $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 and $308,328.54
Victims’ statements were read into the record of the sentencing hearing by the former owner of Herre Brothers, a contractor that went out of business as a result of Dodd’s conduct, and the city of Harrisburg.
Judge Rambo concluded that Dodd was responsible for the projects demise and the loss to the contractors.
As part of the plea agreement with the government, Dodd agreed to forfeit to the government $1,151,037 seized from Wells Fargo brokerage accounts, a 2008 BMW X5 vehicle, a 2008 Mercedes Benz, and $58,041 in cash.
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 was prosecuted by Assistant United States Attorney William A. Behe. Support was provided by the U.S. Attorney’s Office Victim Rights and Asset Recovery Unit.