Illinois Man Sentenced for Mail Fraud

Illinois Man Sentenced for Mail Fraud

Randy Martin, 53, Rockford, Ill., was sentenced on Friday, December 2,to 21 months in federal prison for mail fraud. Martin pleaded guilty to the charge on September 23, 2016. Martin also agreed to a forfeiture of $217,837.68.

The case against Martin originated from an earlier case in the Western District of Wisconsin against Timothy Kosier. Kosier pleaded guilty to theft of government funds and was sentenced by Judge Conley to three years in federal prison on May 9, 2012.

Kosier was the Water Resources Maintenance Supervisor for the City of Beloit’s Water Resources Department. An anonymous letter sent to the Water Services Department led to the recovery of a city lawnmower at the home of Kosier’s mother. A larger investigation revealed that Kosier routinely used city funds to purchase items for his own personal use.

The investigation also revealed that Kosier had approved for payment, on behalf of the city, a large number of invoices for an Illinois company owned and operated by defendant Randy Martin, R & D Mechanical Services, Inc. Once Kosier approved the invoices for payment, the City of Beloit issued checks to R & D Mechanical and mailed them via the U.S. Postal Service from Beloit to Caledonia, Ill. The checks were deposited into an account in the name of R & D Mechanical, Inc. controlled by Martin.

From February 28, 2008 to May 11, 2011, R & D Mechanical, Inc. submitted $217,837.68 in fraudulent invoices for work that was not performed. The Court found that the total loss amount attributable to Martin was $301,639.84 because the fraud scheme started before the dates set forth in the indictment. Martin paid Kosier kickbacks in exchange for approving the fraudulent invoices.

The City of Beloit’s Water Resources Division is part of the City’s Public Works Department. During the calendar year ending December 31, 2010, the City of Beloit received approximately $7,000,000 in federal grants and other federal funding. The Public Works Department received approximately $950,000 of that funding.