BSC owner to pay $1.2M for FEMA scam

ST. PAUL, MN — The owner of a defunct cleaning and disaster recovery company was sentenced to three-and-a-half years in prison and a $1.2 million restitution for his role in a scheme to steal money from the Federal Emergency Management Agency (FEMA) and other organizations, the Associated Press (AP) reported in Wednesday”s Duluth News Tribune. Prosecutors said that Edward Kieger Jr., who owned Lino Lakes, MN-based Kieger Enterprises Inc., Patrick Iwan, the former general manager of the company, and others admitted to roles in a scheme to scam money from disaster relief efforts, including those for the September 11 attack on the World Trade Center in New York, according to the article. The AP reported that according to prosecutors, Kieger Enterprises contracted with governments and private companies to fix damaged property and clean up after disasters, then exaggerated and inflated the amount of work they performed; in a related investigation, the company, Kieger and Iwan were also indicted on charges of bilking corporate clients, including Target Corp., through similar methods on regular maintenance work. Click here to read the full article. For related information, click here. To return to today”s news, click here. To discuss this topic with other industry professionals, click here. For a free subscription to CM e-News DailyTM, the daily news service for the building maintenance industry, click here. For a free introductory subscription (or subscription renewal) to CM/Cleaning & Maintenance Management® magazine, the leading publication in the facility maintenance and contract cleaning industries, click here.

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Cleanfax provides cleaning and restoration professionals with information designed to help them manage and grow their businesses.

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