Shiprock business owner, Aztec man indicted on federal conspiracy to commit fraud charges
FARMINGTON — The owner of a San Juan County construction company and an employee of a company that runs a residential housing facility for students in Aztec each are facing a federal charge of conspiracy to commit federal program fraud.
A news release from the U.S. Attorney’s Office for the District of New Mexico states that William Ross Badoni, 59, of Shiprock, and Elroy Harry, 59, of Aztec, made initial federal court appearances in late April related to an indictment on the conspiracy charge.
Badoni also was indicted on one count of committing theft or bribery concerning programs receiving federal funds and eight counts of money laundering of monetary instruments.
Both men were freed on conditions of release, according to the news release. A trial date has not been set.
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The two men were indicted by a federal grand jury on April 11. The indictment states Badoni was the owner and director of the Badoni Construction Company, while Harry was employed as a maintenance supervisor by Kinteel Residential Campus Inc., described as a residential facility offering free or low-cost housing and meals to students attending school in Aztec. KRCI receives federal funds from the U.S. Department of the Interior through the Bureau of Indian Education.
The indictment alleges that from approximately April 2018 to June 2019, Badoni and Harry conspired to falsify and submit KRCI bids in the names of other construction companies to increase the chances that Badoni’s bids would be selected for KRCI construction projects. The indictment also alleges that Harry provided Badoni with nonpublic information about construction projects and the bidding process.
In exchange for that help, the indictment alleges, Badoni gave, offered or agreed to give things of value, including money, to Harry. The indictment further alleges that once Badoni had won the initial award of construction contracts, the two men worked together to increase compensation for Badoni by submitting fraudulent change orders for the approval of KRCI officials.
Additionally, the indictment alleges Badoni and Harry caused KRCI to issue new construction contracts on an urgent basis under false pretenses to justify deviating from KRCI’s standard policies and procedures.
Badoni faces up to 20 years in prison if he is convicted, while Harry faces up to five years.
Andy Tsui, the Internal Revenue Service-criminal investigation special agent in charge, said in the news release that the indictment shows his agency’s commitment to making sure that fair and open competition exists among companies seeking to work with the federal government.
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“IRS-CI will continue working with our law enforcement partners to ensure an even playing field for those attempting to obtain federal contracts for their business,” he stated.
Alexander Uballez, the U.S. attorney for the District of New Mexico, said his office is committed to protecting taxpayer dollars that are invested in young people.
“Protecting the integrity of contracting processes involving federal funds helps make sure that when we invest in our communities, that investment pays off,” he stated in the news release.
According to the KRCI website, the company’s dormitory at 1600 Lydia Rippey Road in Aztec serves more than 2,800 students who attend classes in the Aztec Municipal School District. According to the company’s eligibility requirements, students must be an enrolled member of the Navajo Nation and must be between 3 and 18 years old.
Mike Easterling can be reached at 505-564-4610 or measterling@daily-times.com.
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This article originally appeared on Farmington Daily Times: William Badoni, Elroy Harry indicted by federal grand jury on April 11
