Man sentenced in work fraud scheme

FORT SMITH — A Virginia man was sentenced in federal court Thursday to 51 months in prison and ordered to pay about $460,000 restitution for an elaborate scheme in which he billed a nursing home company for work never done.

Saying there was evidence he spent most of his adult life as a con man, U.S. District Judge P.K. Holmes III sentenced Gary Jewel, 61, to the high end of the sentencing range for his guilty plea in July to two counts of wire mail fraud and one count of money laundering.

Most of the restitution — more than $432,000 — was ordered to go to Golden Living, with administrative offices in Fort Smith, for whom Jewel worked as a senior construction project manager whose duties were to oversee construction and remodeling jobs of company nursing homes throughout the United States.

In a 29-count indictment, the government accused Jewel of falsifying invoices for payments for work never done by a company he set up called Legacy Consulting or fictitious subcontractors working for Legacy. He also used legitimate companies as unknowing dupes of his fraudulent scheme.

Golden Living attorney Bill Kropp said during the 2 1/2-hour sentencing hearing Jewel exploited the good will he fostered with company officials by falsely portraying himself as a veteran of the Navy Seals and the Army Rangers who earned four Silver Stars and two Purple Hearts for military service.

Because of that reputation, Lisa Garvin, who worked in the company’s construction department, was intimidated by Jewel and was afraid to confront him when she began to question invoices Jewel submitted to the company, Kropp said.

Holmes said it took “a lot of gumption” for Garvin to report her suspicions to company officials, which began the investigation that led to the dismantling of Jewel’s scheme.

Holmes said while Jewel’s crimes were against a company, they hurt employees who tried to do their jobs honestly by creating mistrust.