Indictment: Fake Contractors Bilked Factors Three men have been indicted in an alleged scheme to defraud factoring companies by borrowing money against nonexistent federal contracts. A federal grand jury in Greenbelt, MD, charged an Army warrant officer and two civilians with collecting $4 million over more than a year and a half after they convinced the two companies to finance a classified contract for military communications. The three men allegedly created fake contracts, a fake company and fake documentation. Warrant Officer Dejuan A. Fountain of Douglasville, GA, Rafael Simmons of Laurel, MD, and Rodney Mathis of Stafford, VA, were indicted Aug. 24 on multiple counts of wire fraud. They were arrested in July and freed on bond, according to the U.S. Attorney’s office in Maryland. The indictment seeks forfeiture of more than $4 million and two vehicles. “This indictment alleges that an Army warrant officer conspired with two other men to defraud finance companies by falsely representing that services had been provided to the government,” U.S. Attorney Rod Rosenstein said in a statement. “We seek to hold the perpetrators accountable and forfeit the stolen money so that it can be returned to the victims.” The case was investigated by the FBI, IRS, Defense Criminal Investigative Service and Transportation Department inspector general. Contractor Settles Kickback Case Dynamics Research Corp., a defense contractor based in Andover, MA, has agreed to pay the federal government $15 million plus interest to settle allegations that two of its former executives engaged in a fraudulent kickback scheme in connection with Air Force contracts. The Justice Department said the two executives steered contracts for computer equipment and services to companies owned by themselves and their associates. The executives pleaded guilty to conspiracy charges in 2001 and were sentenced to prison.