Two area men were indicted late last month in U.S. District Court on suspicion of defrauding the government.
William Ross Badoni, 59, of Shiprock and Elroy Harry, 59, of Aztec allegedly worked together to secure federally funded contracts for Badoni’s business Badoni Construction Co.
It is alleged from April 2018 to June 2019, Badoni and Harry conspired to submit false bids to Kinteel Residential Campus Inc. Harry was the maintenance supervisor at Kinteel, which is a residential facility, offering free or low-cost housing and meals for students attending school in Aztec. The facility received federal funds from the Department of the Interior through the Bureau of Indian Education.
“We will ardently protect taxpayer dollars invested in our youth,” said U.S. Attorney Alexander M.M. Uballez, who is prosecuting the case. “Protecting the integrity of contracting processes involving federal funds helps make sure that when we invest in our communities, that investment pays off.”
Harry reportedly offered Badoni secured information about construction projects and the bidding process and then Badoni allegedly paid him for the information. When Badoni was awarded construction contracts at the facility, he and Harry reportedly worked together to create fraudulent change orders that increased the amount of money Badoni received.
The two also allegedly worked together to force Kinteel to issue new construction contracts, which were characterized as being needed on an urgent basis. The indictment alleged the men used this to justify a deviation from Kinteel’s standard bidding process.
“This indictment shows IRS-Criminal Investigation’s commitment to ensuring fair and open competition opportunities for companies seeking to work with the federal government,” said Andy Tsui, special agent in charge from the IRC. “IRS-Criminal Investigation will continue working with our law enforcement partners to ensure an even playing field for those attempting to obtain federal contracts for their businesses.”
Because Kinteel Residential Campus Inc. provided housing to Native American students, Department of Interior officials says they will aggressively investigate fraud in programs.
“The Department of the Interior Office of Inspector General is committed to protecting our Indian Country schools and dormitories, so the students receive the education and opportunities they deserve, and the educators and staff have the resources they need,” said Jamie DePaepe, special agent in charge for the Department of the Interior.
Badoni was charged with one count committing theft or bribery concerning programs receiving federal funds, fraud and eight counts money laundering. Harry was charged with conspiracy to commit federal program fraud.
