Authorities have accused Stanley P. Phillips, 47, of fraudulently trying to steer $600,000 of a lucrative military contract to a business that could not fulfill the terms of the contract. Phillips is now facing seven counts of wire fraud for his role in the alleged scheme.
Prosecutors claim that Phillips worked as the construction/site manager for a military sub-contractor that was hired to build what is known as a Weak Acetic Recovery Facility at the Holston Army Ammunition Plan in Kingsport, TN. It is believed that Phillips used his position with the sub-contractor to fraudulently steer work on the project to a nursing registry business that he owned. Authorities allege that the main sub-contractor had no knowledge of Phillips’ affiliation with the other company, or the fact that the company was not equipped to perform the work.
If convicted, the maximum penalties for each criminal charge are twenty years in prison, up to three years of supervised release, and a fine of $250,000.
Stanley P. Phillips’ trial has tentatively been scheduled for December 16, 2013 in Fort Lauderdale, FL.
The investigation of this case was handled by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the United States Army Criminal Investigation Command. Assistant United States Attorney Carolyn Bell is prosecuting the case.
