Three Indicted in Wisconsin Fraud and Money Laundering Scheme Involving Over $200 Million in Government Contracts
On April 3, 2018, Brian Ganos, Mark Spindler, and Sonag Company Inc. (Sonag), were indicted in U.S. District Court, Eastern District of Wisconsin, Milwaukee, Wisconsin. Ganos was indicted on conspiracy to commit wire fraud, wire fraud, mail fraud, money laundering conspiracy, concealment money laundering conspiracy, and unlawful financial transactions. Spindler was indicted on conspiracy to commit wire fraud. Sonag was indicted on conspiracy to commit wire fraud and money laundering conspiracy.
The indictment alleged that, to qualify for Federal programs, Ganos operated and controlled companies that had straw owners, which gave him access to Government contracts for which he was not qualified. Nuvo Construction was certified as a DBE and listed as owned and operated by Jorge Lopez; however, Ganos allegedly ran and controlled the company. Ganos utilized Nuvo’s DBE status for Sonag, which was not DBE qualified, to secure Government contracts.
The indictment also alleged that Ganos conspired with Sonag and others to conceal the nature, source, and location of the proceeds from the fraud scheme. In consultation with Spindler, Ganos and others directed bookkeeping, accounting, and payroll procedures that facilitated and concealed the scheme.
DOT-OIG is conducting this investigation with the FBI, Department of Veteran Affairs OIG, Small Business Administration OIG, General Services Administration OIG, Army Criminal Investigation Division, and Department of Defense OIG.
Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.