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North Carolina defense contractor sentenced to five years for $15 million fraud

Posted at 11:39 AM, Dec 04, 2017
and last updated 2017-12-04 15:26:23-05

NORFOLK Va. – A defense contractor from Fayetteville, North Carolina was sentenced to five years in prison for crimes that included over billing the federal government, and involved a former Comptroller for Norfolk Ship Support Activity (NSSA).

Philip A Mearing of Global Services Corporation, along with a co-conspirators Kenneth Bricker and Ken Deines, for ten years billed the government for millions of dollars for work that they never performed.

Over the ten years of fraudulent acts from 2004 to 2014, Mearing and his associates also worked with former NSSA Comptroller William Hutsenpiller to submit false claims to the government via false invoices that resulted in a loss of approximately $1.8 million.

During the sentencing for Mearing in court on Friday Dec. 1., the Court said Mearing had netted a loss to the federal government of over $15 million. Mearing will be back in court on Dec. 12. to determine forfeiture and restitution.

Former NSSA Comptroller Hutsenpiller was sentenced to 40 months in prison in early October of 2017.

From 2010 through 2014, Hutsenpiller made numerous requests that Global provide him with various items of value and services for his personal use, which Global agreed to purchase with government funds.

The gratuities that Global provided to Hutsenpiller included a variety of personal electronic items and accessories for Hutsenpiller and his family.

Hutsenpiller pleaded guilty to receiving $35,870.69 in gratuities from Global Services Corp.

As part of today’s sentencing, Hutsenpiller was ordered to pay a Restitution Judgment of $35,870.60, and to pay a forfeiture amount of $35,000.