A San Antonio businessman has been indicted in what federal prosecutors say was an elaborate scheme to steal up to $10 million from the U.S. Army, 1200 WOAI news reports.
A 40 county indictment charges John Walter Hoffman, 43, the owner of Hoffman Surgical Devices, with working with former Brooke Army Medical Center radiologist Dr. Heidi Lynn Webster, 50, and 42 year old Lawrence Peter Fenti of New Braunfels, identified as the former non commissioned officer in charge of Base Realignment and Closure issues for BAMC radiology.
Fenti and Dr. Webster have also been named in the indictment.
The indictment claims that after she left the Army, Webster formed two corporations which were certified by the Small Business Administration as owned by a 'socially and economically disadvantaged person' and therefore eligible to obtain certain federal contracts with limited competition.
The three are charged with bribing Army personnel and making false statements, as well as taking advantage of Webster's SMC status, to obtain Army contracts to sell MRI devices, as well as staffing services, to BAMC as well as to Army hospitals at Ft. Riley Kansas and Ft. Bragg North Carolina.
The three then allegedly overbilled or falsely billed the Army and submitted 'substantially overinflated invoices' for billing.
Among the charges faced by the three is impersonation of a U.S. Army officer. They are also charged with bribery, money laundering and wire fraud.