Contractor Charged with $1.2M Fraud, Lying About Paying Subcontractors

Andrew Persaud, president of Persaud Companies Inc., has been indicted by a federal grand jury for allegedly lying to the government and defrauding subcontractors of more than $1.2 million.

Persaud had entered into a $4.4 million contract to renovate warehouses at a naval facility in 2011. Persaud allegedly hired 17 subcontractors for the project and in June and July of 2012 he allegedly submitted invoices for payments to the Navy certifying all of the subcontractors had been paid for their work. However, by August most of the subcontractors had walked off the jobsite claiming they had not been paid. 

The Navy terminated Persaud's contract and is now seeking restitution of more than $1.2 million which it allegedly paid Persaud. In addition, Persaud faces up to 10 years in prison if convicted.

(more on the Navy's fraud suit against contractor Andrew Persaud...)