Joseph Dial Jr. of Belton, Mo., has been indicted by a grand jury on four counts of wire fraud and four counts of major program fraud against the government for attempting to win contracts from the U.S. Army Corps of Engineers program for service-disabled veteran-owned small businesses.
According to the indictment, Dial was operating a subcontract project at Fairchild Air Force Base in Washington and was approached by a representative of United Medical Design Builders who was looking for a disabled vet so the company could qualify for set aside projects.
U.S. Attorney General Tom Beall said Dial “unlawfully devised a scheme to defraud” the government between August 2008 and September 2015 “by means of material false and fraudulent pretenses.”
Dial is accused of posing as the figurehead of United Medical Design Builders and receiving payments for his participation. One witness stated that Dial had signed a blank piece of paper which was scanned and used for official letters and correspondence.
The indictment charges that United Medical Design Builders was awarded four construction projects worth $40 million using their fraudulent status:
- Langley Air Force Base, a $10,229,325 contract from August 2011
- Andrews Air Force Base, a $9,481,699 contract from September 2011
- Joint Base McGuire-Dix-Lakehurst, a $4,521,402 contract from September 2012
- Hanscom Air Force Base, a $8,269,776 contract from September 2012
The case is being investigated by the offices of the inspector general for both the Small Business Administration and the General Services Administration, the Defense Criminal Investigative Service and the Army CID Major Procurement Fraud Unit.
If convicted, Dial faces 10 years in federal prison on each count of defrauding the government and 20 years on each count of wire fraud, as well as fines and forfeiture.
Dial served three years of active duty with the Army, two years with the Army Reserves, and three years with the Missouri National Guard. The U.S. Department of Veterans Affairs classified Dial as having a “30 percent disability rating.”