Michigan survey company owners busted for defrauding US through MDOT for millions

FOX 2 - A group of Michigan men have pleaded guilty to defrauding the US government through the Michigan Department of Transportation.

Jeffrey and Brian Bartlett - the owners of Surveying Solutions Inc. based in Standish, Michigan, as well as Andrew Semenchuk, a former owner of SSI all pleaded guilty to one count of conspiracy to defraud the United States.

The backstory:

From February of 2011 through July 2019, the Bartletts, Semenchuk, and two others owned and operated SSI, a surveying company that was awarded millions of dollars in highway construction contracts by MDOT. Those contracts were funded almost entirely by federal funds through USDOT.

SSI frequently worked with MDOT on contracts and was reimbursed for work, but through fraudulent overbilling, The group in charge of the company got millions of dollars of overpayments from MDOT which they distributed among themselves.

The fraudulent overbilling included reporting false and non-existent employee and information technology costs, reporting improper and inflated equipment and real property lease costs, and hid the true ownership of and control over the SSI entities to justify it.

It is unclear what penalties Jeffrey Bartlett, 52, of Standish, Michigan, Semenchuk, 53, of Rives Junction, Michigan, and Brian Bartlett, 50, of Bentley, Michigan, will receive as part of their plea.

Typically a conviction for conspiracy to defraud the US carries with it a penalty of up to five years in prison and fines up to $250,000 individually or $500,000 for an organization.

"Today’s guilty plea highlights a calculated attempt to exploit the competitive contracting process for personal enrichment," said Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Field Office. "Fraud of this nature erodes public trust, undermines the integrity of government programs, and unfairly disadvantages honest businesses."

The SSI website says the company specializes in geospatial/surveying services, surveying for transportation projects including surveys for design and boundaries.

"Contracting with the United States government demands fairness and integrity," said Anthony Licari, Special Agent in Charge of the DOT Office of Inspector General, Midwestern Region.