From May 2008 to October 2010, Alexander Robert Xavier of Florida issued worthless bonds, meant for government construction contracts, to several different federal agencies, including the Department of Veterans Affairs. Xavier claimed to be an “individual surety” (mandatory insurance for major government construction projects) on the payment bonds. In actuality, these assets never existed. Previously Xavier was found guilty of major fraud including mail fraud and making a false statement to the Department of the Army.
According to evidence at trial, Xavier and his associates received over $4.3 million in fees from the United States Department of the Army and the United States Department of Labor. District Judge Kenneth A. Marra sentenced Xavier to 150 months in prison and to repay over $4 million in compensation.
