ALEXANDRIA, Va. – A Florida man was sentenced today to four
years in prison for defrauding investors in his company of more than $5
million.
According to court documents, David Webb, 59, of North Palm
Beach, made false statements to more than 70 investors from Virginia and other
states. Webb told them that he had a very successful government contracting
business, G4i Capital Partners, and that he would only use the investors’ money
to pay subcontractors between the times when contracts were awarded and when
the government started to pay invoices. Webb also told the investors that their
investments were safe. Webb claimed that if his company failed, a trustee would
collect the money the government owed for the work already done and repay the
investors. Webb provided many false documents and emails to support his fraud
scheme. In fact, Webb used later investors’ money to make “interest” payments
to earlier investors. Webb lent a large portion of the money to a friend who
was trying unsuccessfully to start his own government contracting business.
Finally, Webb paid himself a salary and used other money collected from
investors on various personal expenses. Webb’s company never obtained a single
government contract.
In addition to the prison sentence, Webb was ordered to pay
full restitution to his victims and sentenced to three years of supervised
release.
Tracy Doherty-McCormick, Acting U.S. Attorney for the
Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge
of the FBI’s Washington Field Office, made the announcement after sentencing by
Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Jack
Hanly and Grace L. Hill prosecuted the case.
A copy of this press release is located on the website of
the U.S. Attorney’s Office for the Eastern District of Virginia. Related court
documents and information is located on the website of the District Court for
the Eastern District of Virginia or on PACER by searching for Case No.
1:17-cr-46.
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