A Clovis couple accused of defrauding the Air Force of $6.4 million have pleaded not guilty to all charges, their attorney, Terree Bowers of Los Angeles, told the Clovis News Journal.
Donald Dean Brewer, 62, and his wife, Sherri Lynn Brewer, 62, were released on their own recognizance following a hearing Monday in federal court in Lubbock, Bowers told the News Journal.
The Brewers and 60-year-old James McKinney of San Antonio, Texas, are charged with conspiracy to defraud the government, 12 counts of wire fraud and four counts of major fraud for allegedly bilking the government by means of a sham subcontracting business, the paper reported.
But Bowers said the Brewers are innocent and “intend to fight this vigorously,” the News Journal said.
The Brewers are former owners of Brewer Jeep and Brewer Mitsubishi of Clovis, according to the paper.
12:46pm 11/4/11 — Lawyer: Couple Accused of Fraud Saved Government Money
By Robin Fornoff/Clovis News Journal
CLOVIS — A lawyer for a former Clovis car dealer and his wife, accused of defrauding the Air Force of $6.4 million, said Thursday his clients have actually saved the government money.
The Associated Press reported Donald Dean Brewer, 62, and his wife, Sherri Lynn Brewer, 62, of Clovis were indicted by a federal grand jury Wednesday along with James McKinney, 60, of San Antonio, Texas.
All three are charged with conspiracy to defraud the government, 12 counts of wire fraud and four counts of major fraud.
The 17-count indictment accuses the three of creating a sham subcontracting business — Enterprise and Deployment — to bilk the government.
But Washington, D.C., attorney Craig King said the Brewers didn’t do anything wrong.
“The facts will show,” King said, “that Enterprise and Deployment took what had been an incredibly chaotic and expensive cabling project and managed this project in such a way that, for the first time in the history of the project, it came in on budget and on time.”
The Brewers are the former owners of Brewer Jeep and Brewer Mitsubishi in Clovis.
The indictment centers around two companies, KARTA Technologies Inc. and Ark Systems Inc., providing computer technology for medical systems and based at Brooks City Air Force Base in San Antonio. Donald Brewer was a program manager for KARTA.
King said Enterprise and Deployment was created to help stop waste.
“These guys put together a little company that took on a project that had for years not been well performed … over budget … over cost,” said King.
“E&D actually received numerous commendations for their outstanding work,” King said. “It is shocking that the government has chosen to indict under such circumstances.”
King said he hasn’t yet seen the indictment. He said it is his understanding the U.S. Attorney’s Office in San Antonio bases its case against the Brewers “on the proposition that no value was added by E&D’s participation.”
“That,” said King, “is ridiculous.”
The San Antonio Express News was reporting the indictment alleges the Brewers and McKinney tainted $33.5 million in contracts by overcharging the Air Force more than $6.4 million between 2002 and 2008. The newspaper said the indictment charges the trio with inflating billings for contracts to install cabling and electronics for information and telephone systems at government medical facilities worldwide.
McKinney was released on unsecured bond following a hearing Thursday before U.S. Magistrate Judge Nancy Nowak and is scheduled for arraignment Nov. 10.
The Brewers have yet to appear in court. Sherri Brewer, contacted at home Thursday, declined comment and referred all questions to King.
Distributed by MCT Information Services
Nov. 3, 2011 6:27 a.m. — Clovis Couple Accused of Defrauding Air Force
By The Associated Press
SAN ANTONIO, Texas — A federal grand jury in Texas has indicted three people in a $6.5 million fraud investigation linked to Air Force services and alleged overcharges.
Prosecutors in San Antonio say a 17-count indictment returned Wednesday names 60-year-old James McKinney of San Antonio, 62-year-old Donald Dean Brewer and his wife, 62-year-old Sherri Lynn Brewer. The Brewers are from Clovis.
All three are charged with conspiracy to defraud the government, 12 counts of wire fraud and four counts of major fraud against the government.
The indictment says Donald Brewer was employed by KARTA Technologies Inc. as the medical systems infrastructure modernization program manager at Brooks City-Base in San Antonio. McKinney served as a vice president with Ark Systems Inc.
The indictment alleges the trio and others created a sham subcontracting business.