Ex-Construction Company Owner Indicted For Defrauding Federal Veteran Program

A federal grand jury in San Antonio, Texas, returned an indictment charging the former owner of several companies in the construction industry for his role in a long-running scheme to defraud the United States.

According to court documents, Michael Angelo Padron was charged with one count of conspiracy to commit wire fraud and to defraud the United States and eight counts of wire fraud. Padron, along with co-conspirators Michael Wibracht and Ruben Villarreal, allegedly conspired to defraud the United States in order to obtain valuable government contracts under programs administered by the US Small Business Administration (SBA) for which neither his nor his co-conspirators’ companies were eligible. 

Villarreal and Wibracht pleaded guilty to the scheme on November 20, 2020, and March 4, 2021, respectively. Wibracht pleaded guilty to one count of conspiracy to commit wire fraud and defraud the United States. Villarreal pleaded guilty to one count of conspiracy to defraud the United States.

“Today’s charges show the division’s commitment to holding individuals accountable when they cheat the government procurement process,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division. “This conspiracy robbed contract opportunities from honest businesses run by those who were injured in the service to our country. With support from our law enforcement partners, the Antitrust Division will continue to prosecute those who cheat the system to gain taxpayer dollars.”

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