ORANGE COUNTY
2 Accused of Defrauding Government: Two owners of a Temecula company were charged in a criminal complaint Monday with conspiring to defraud the U.S. Small Business Administration of $175,600.
Craig A. Vaz and Howard K. James, owners of Paragon Pacific Contractors Inc., are accused of cooperating with a Laguna Niguel construction consultant, John R. Sevier III, in a kickback scheme, Assistant U.S. Atty. Nathan J. Hochman said.
The scheme started in 1990, federal prosecutors said, when Southern Specialty Co., a Nevada corporation, failed to complete three of 11 projects for the Navy and Air Force. The government hired Forcon International Inc., an Irvine construction consultant, to look for a new subcontractor. Forcon, in turn, hired Sevier.
Federal prosecutors said Sevier arranged to hire Paragon, which inflated the bills far in excess of the legitimate cost of $171,805. Sevier used the extra money to pay some of his personal debts, prosecutors said.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
