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Locust Hill woman sentenced: Mail fraud of $1.19M

Genevieve Coley, 53, of Locust Hill, was sentenced on January 8 to 15 months in prison for mail fraud committed in connection with her business that defrauded a partner of $1.19 million, according to Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, who made the announcement after sentencing by U.S. District Judge Robert E. Payne.

According to court documents, in 2002 Coley incorporated as GAD Associates Inc., a Virginia corporation, for the purpose of wholesaling industrial supplies to the United States as a minority-owned business under the small business set aside program. 

Coley was the corporate president, treasurer and secretary. GAD would obtain the supplies from Blackmer, a corporation which contracts a portion of its government business with minority-owned businesses. In acting as a Blackmer’s sales representative to the U.S. government, GAD bid on federal contracts needing Blackmer products. Coley handled all correspondence with, to, and from the government. This business was conducted via internet bids, telephone discussions, wire transfers, and the United States mail.

Blackmer would ship pumps and other products directly to the government based on GAD’s successful bids and contracts. Pursuant to GAD’s contract with Blackmer, the government, via Defense Finance & Accounting Services (DFAS), would pay GAD directly via wire transfer into GAD’s bank account. GAD was to then pay Blackmer according to the terms of their contract. 

In the mail fraud scheme, by letter and other communications, Coley falsely represented to employees of Blackmer that the government had not paid for the goods yet, so funds could not be sent to Blackmer for the goods delivered to GAD. Blackmer relied on these false representations and continued to support Coley’s internet bids for products that Blackmer supplied. 

Prior to its discovery, the scheme netted Coley $1,192,322.47 in defrauded funds that were due to Blackmer, and which Coley wrongfully withheld and dissipated.

Coley now has a judgment against her in the amount of $1,161,079.16. “She knows that when she dies the land upon which she currently lives, and which has been passed down in her family, will be seized” by Blackmer, according to documents filed by Coley’s attorney, in arguing for a lesser sentence.

This case was investigated by U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney S. David Schiller prosecuted the case on behalf of the United States.

Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or at http://pacer.uspci.uscourts.gov.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. 

posted 01.13.2010

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