Two leaders of Newtown, Ohio-based Evans Landscaping were convicted on six charges of wire fraud, bringing a three-year investigation that started with an FBI raid to a close.
Doug Evans and Jim Bailey, along with four others who pleaded guilty to charges, created a front company as a way to win minority and small business contracts for which Evans Landscaping did not qualify. At the time, the company was losing money after the housing market crash during the Great Recession, prosecutors said.
Prosecutors said the scheme defrauded the city of Cincinnati alone of nearly $2 million over the course of three years. Here's how it worked:
Ergon was established in 2008 by Evans Landscaping, which filed paperwork with the Secretary of State, opened a bank account and funded the company. Evans signed a $50,000 check for startup funds through his company B.E.E. Holdings. Evans continued to fund Ergon, providing another $35,000 in the first six months.
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