Defense contractor pleads guilty to $15 million fraud

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NORFOLK, Va. (WAVY) — A defense contractor pleaded guilty Tuesday to his part in multiple conspiracies to overbill the federal government by more than $15 million on government contracts.

Philip A. Mearing, 48, is the owner of Global Services Corporation.

In 2004, court documents say Mearing — along with a co-conspirators Kenneth Bricker and Ken Deines — agreed to make fraudulent payments by Global to Bricker’s two straw corporations, Tempo and BPM, regarding hundreds of invoices for work and services on behalf of Global that were never performed by Tempo and BPM.

As part of their agreement with Global, Mearing, Deines and Bricker normally retained five percent of the fraudulent payments made by Global to Tempo and BPM.

Shortly thereafter, Bricker transferred the remaining 95 percent of these fraudulent payments to Mearing and to DeShas, an Ohio LLC controlled by Mearing. From 2004 to 2014, Bricker received about $13.6 million in fraudulent payments from Global, retained around $558,000 for his personal use and then issued checks totaling approximately $13 million to DeShas or to Mearing.

In a separate conspiracy to defraud the government, Mearing, Deines, and William Hutsenpiller, the former Comptroller for Norfolk Ship Support Activity (NSSA), knowingly and willfully conspired to submit false claims to the government via false and/or fictitious invoices that resulted in a loss of approximately $1.8 million.

The combined loss amount to the government from the two separate conspiracies totals more than $15,000,000.

Mearing pleaded guilty to conspiracy to commit wire fraud, and faces a maximum penalty of five years in prison. He will be sentenced on Sept. 29.