Environmental firm VP pleads guilty to defrauding military

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The vice president of an Armstrong County environmental company that tore down a South Carolina building for the U.S. Navy pleaded guilty in federal court today to charges that he and the company president lied to secure the contract under a federal minority set-aside program and defrauded the military.

Barry Kent Peterson, who ran Fullard Environmental Controls in Ford City with President Michael Fullard, pleaded to two counts of wire fraud and will be sentenced in November.

Mr. Fullard, who pleaded guilty in 2012, cooperated with federal investigators and is awaiting sentencing, scheduled for Friday.

Mr. Fullard, who is black, started the company in 2000. In the South Carolina case, the Navy offered $2.2 million for the partial demolition of a Marine Corps air station.

Mr. Fullard and Mr. Peterson bid on the project through a Small Business Administration minority set-aside program and told the Navy that their company would do the bulk of the work.

Instead, Fullard Environmental hired a New Jersey subcontractor, Yannuzzi and Sons, for $800,000 and pocketed the rest.

First Published August 7, 2014 12:00 AM

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