$13 million lost in fraud case in Kansas

Two Kansas men face lengthy prison terms for defrauding the Defense Department out of nearly $13 million in government contracts.

Federal prosecutors in Kansas City contend Troy L. Bechtel, 49 of Overland Park, Kansas was the main violator. He’s charged with two counts of major program fraud and two counts of lying to federal investigators.

The scheme involved a second man, Joseph David Dial, Jr. a disabled Army veteran who supposed controlled United Medical Design Builders, LLC of Merriam, Kansas. In reality, the company was a pass-through firm really controlled by Bechtel.

The firm received $12.7 million from a contract through the Service-Disabled Veteran-Owned Small Business program. The contract was for the design and construction of healthcare operations at Langley AFB, Andrews AFB, Hansom AFB and McGuire AFB.

Prosecutors contend Bechtel rain the daily operations while Dial was rarely in the office. Dial also had signed a blank sheet of paper that was scanned for use on official letters.

Dial’s already pleaded guilty and will be sentenced next week. Bechtel faces up to 10 years in prison if he’s convicted.

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