Washington Resident Sentenced for Fraudulently Obtaining Over $360,000 in COVID-19 Relief Funding

Construction company owners Edward DiGorio Jr. and Edward Kessler pleaded guilty in federal court to charges of executing a major fraud scheme against the United States. DiGorio and Kessler were the owners of two construction companies, ADDVETCO, Inc., and Hi-Def Contracting, Inc., operating in Pittsburgh. The companies were formed for the purpose of bidding on and acquiring “set-aside” contracts issued by the VA to small businesses owned and operated by service-disabled veterans. However, neither DiGorio nor Kessler served in the military. They paid service-disabled veterans to falsely represent themselves as the primary owners and operators of the companies. From 2007 to 2018, the companies were awarded 67 contracts, 50 of which were valued at $1 million or more. Their sentencing is scheduled for July 11, 2024. The case was investigated by the VA OIG and FBI.

Edward DiGorio Jr. and Edward Kessler, both of Myrtle Beach, South Carolina, were sentenced to one-year probation, 100 hours of community service, and ordered to pay a $50,000 fine and $403,142 in restitution following guilty pleas for committing major fraud. DiGorio and Kessler were the owners of two construction companies operating in Pittsburgh, Pennsylvania, and formed for bidding on and acquiring “set-aside” contracts issued by the VA to small businesses owned and operated by service-disabled veterans. Neither man met the criteria for these contracts. They executed a classic “Rent-A-Vet” scheme, in which they paid service-disabled veterans to falsely represent themselves as the owner/operators and to falsely attest to ownership of the companies on critical documents submitted to the VA as part of the contract certification process. The VA OIG and the FBI investigated this case.