An Alpharetta businessman is guilty of defrauding NASA and the National Science Foundation of almost $800,000, the U.S. Attorney’s Office announced Tuesday.
The federal jury in Atlanta convicted Craig D. Near Friday of wire fraud and false claims against the United States in a procurement scheme involving his company Genziko Inc., Acting U.S. Attorney John Horn said in an email.
“For years this defendant supported himself and his family in a suburban lifestyle, with practically his only earnings being the fruits of his scheme defrauding the government,” Horn said. “The Small Business Innovation Research Program, which Near defrauded, supports technological innovation by investing federal research funds in critical priorities. Near’s scheme diverted funds that should have been used for these important goals.”
From approximately June 2008 to June 2014, Near submitted fraudulent grant and contract proposals seeking funds for scientific research, Horn said.
Genziko presented fraudulent budgets and costs, including salaries for phantom employees, which Near pocketed, Horn said. “At the same time, Near pocketed money earmarked for the university subcontractors and scientist consultants who actually completed work on the research projects,” Horn said in the email.
These techniques allowed profits ranging from 79 to 197 percent on the three proposals despite NSF and NASA contracts having a cap of 7 percent for profits, Horn said.
Sentencing is scheduled for 10 a.m. Sept. 1, 2015, before U.S. District Judge Thomas W. Thrash.
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