A Nebraska contractor has admitted to a scheme using a veteran to get government contracts. Ram Hingorani pled guilty in the U.S. Southern District Court in Iowa to using his company, Midwest Paving Incorporated, to launder money in the scheme. He also admitted to program fraud and wire fraud.
Court information shows that Hingorani use Ronald Waugh, a disabled veteran, as his business partner to get government contracts targeted at veterans. The investigation revealed that Waugh was simply a figurehead or “rent-a-vet” to qualify the company for the contracts.
A federal grand jury in the Southern District of Iowa issued a 32-count indictment in May of 2013 charging Hingorani and his business partner Ronald Waugh with multiple counts of major fraud, wire fraud, money laundering and conspiracy in connection with $23.5 million in contracts. Agents seized nearly $4 million of the company’s assets.
Under the plea agreement, Waugh will not be charged, but Hingorani faces a possible prison term of two years and could be forced to forfeit profits from the contracts.