Lawyers: Man admits he defrauded subcontractors

Written by The Associated Press | Feb 24, 2016 2:48 AM



(Harrisburg) -- Federal attorneys say a former U.S. Navy contractor from Cumberland County has admitted under a plea deal to giving false statements after he defrauded subcontractors out of more than $1.2 million. 

Prosecutors say Andrew Persaud has pleaded guilty to submitting a false statement in connection with a 2011 contract to renovate warehouses at the Naval Support Activity Center. 

They say the 43-year-old Mt. Holly Springs man swindled more than $1.2 million in payments meant to pay 17 subcontractors involved in the Mechanicsburg project. 

The Navy terminated the contract after discovering the subcontractors weren't paid and most had walked off the job. 

Persaud has agreed to pay $1.2 million in restitution and forfeit the prior $1.2 million payment.

He faces up to five years in prison.

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