The Gazette Six Colorado Springs software executives have been sentenced to federal prison after being convicted of wire and mail fraud.
According to the U.S. Attorney’s Office in Colorado, the six men defrauded 42 staffing companies by convincing them that they were developing software for law enforcement and needed employees to test the software. According to the office, the men posed as employees and were paid by the staffing companies. They also lied about the number of hours employees worked, the times of day they worked and the nature of the work they performed.
Their company never paid back the wages to the staffing companies and owed the companies more than $5 million.
The men were indicted in June 2008 and convicted on Oct. 20, 2011. The sentencing started last week and concluded on Monday. David A. Banks and Gary L. Walker were sentenced to 135 months in prison and Demetrius K. Harper, Clinton A. Stewart and David A. Zirpolo were all sentenced to 121 months in prison. Kendrick Barnes was sentenced to 87 months in prison.
The men were also all ordered to pay $5 million in restitution jointly.
“Financial fraud schemes are often described as a house of cards and will eventually fall apart, exposing the individuals responsible, said Lilia Ruiz, Acting Special Agent in Charge of the IRS Criminal Investigation Denver field office. “These sentencings send a clear message; there will be consequences for committing such crimes.”