Company President Pleads Guilty to Mail Fraud Involving FHWA Funded Contracts
On March 2, Kamleshwar Gupta, President and CEO of KAM Engineering, Incorporated (KEI), pled guilty in U.S. District Court, Northern District of Illinois, to mail fraud related to falsified information submitted to the Illinois Department of Transportation (IDOT) and other state entities for payment on state transportation contracts.
From 1994-2003, Mr. Gupta submitted false invoices and financial information regarding overhead expenses and the number of hours worked by KEI employees on contracts for IDOT, Chicago Department of Transportation, Metra, and the Illinois State Tollway Authority, many of which were Federally-funded by the Federal Highway Administration (FHWA). The total amount of fraudulent invoices amounted to over $1.6 million. The scheme to defraud involved Mr. Gupta moving hours among different jobs and contracts by directing the 30 plus employees of KEI to complete timesheets in pencil, which allowed the alterations. Fraudulent invoices were then mailed to IDOT for payment. Mr. Gupta has made full restitution to all parties involved. After indictment, KEI, now defunct, and Mr. Gupta were suspended by FHWA.
This was a joint investigation with the Federal Bureau of Investigation with substantial assistance from IDOT, Division of Audits. Sentencing for Mr. Gupta is scheduled for May 27, 2010.