Acquisition

Supply company owner pleads guilty to $1M fraud scheme

The owner of three fraudulent commercial supply companies has pled guilty to cheating approximately 40 subcontractors out of more than $1 million.

From February 2010 through August 2015, Keith B. Fisher Sr. of Philadelphia used FedBid.com to submit quotes and offers for his companies KLA International Inc., Quad Trade Services Inc. and TCI Technologies. After winning federal contracts, Fisher and his associates would subcontract third-party vendors to provide goods to government agencies with the intention to not pay or only pay nominal amounts to the 40 victim vendors.

Providing the vendors with fraudulent credit applications, false trade references and fraudulent information about the financial status of his companies, Fisher convinced 40 victim vendors to ship goods on credit while he and his conspirators pocketed the money paid by the agencies.

Fisher is scheduled to be sentenced June 19, 2017, on one charge of conspiracy to commit mail fraud, a charge that carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest.

A FedBid spokesman said the company cooperated with the inspectors general throughout the investigation and acts quickly to remove barred sellers from its platform.

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