TEXARKANA, Texas–A Texarkana woman who owns a commercial janitorial service has pleaded guilty to wire fraud in federal court for lending her business’ status as woman-owned and Native American-owned to others so they could get millions in lucrative government contracts they otherwise wouldn’t have been awarded.
Kimberly Swanson appeared before a federal judge in Texarkana and pleaded guilty earlier this month to wire fraud, court records show. Beginning around 2011 and continuing through May 2019, Swanson “was given a share of profits from these fraudulent contracts, and falsified records to claim contracted work was performed by her company and by her personally, when this was not the case,” according to court records.
Swanson was a part owner of Blackwood Services Group, doing business as JIREH Group LLC, at the time of the fraud. Blackwood, doing business as JIREH, was an “8(a) Certified Business, Women Owned Small Business (WOSB), Native American Owned Business (NAOB) and a certified HUBZone Business,” according to court records.
With that 8(a) status, Swanson’s company was able to get contracts other businesses were ineligible for. Swanson falsified records in exchange for 49% of the profits earned by a person identified in court records as “co-conspirator 1.”
The records point out that Swanson’s janitorial business has no history or experience with construction or refurbishing military vehicles and that none of her employees possessed those kinds of skills. Swanson signed government contracts identifying “co-conspirator 1” and “co-conspirator 2” as regional manager and project manager of her janitorial company.
Co-conspirator 1 allegedly used three companies they operate in Texarkana to fulfill the contracts. Swanson submitted false payroll documents and falsified a document in 2017 that certified she and “co-conspirator 3” had worked together to fulfill a contract when Swanson had done no work, according to court records.
Swanson “profited not more than $641,926.64 from contract awards totaling $23,249,037″ from 2011 to August 2018, according to court records.
“It was during the performance of this contract that the Pine Bluff Arsenal contracting office requested copies of JIREH payrolls,” court records state.
Swanson pleaded guilty to a single count of wire fraud at a hearing Dec. 4 before U.S. Magistrate Judge James Boone Baxter in Texarkana’s downtown federal building. Judge Baxter allowed Swanson to remain free pending sentencing on an unsecured $20,000 appearance bond.
Swanson faces up to 20 years in prison and a fine up to $250,000. Her case will be scheduled for sentencing once the court has received a report including a recommendation for punishment under federal guidelines.
Swanson is represented by Texarkana lawyers Jason Horton and John Pickett. Assistant U.S. Attorney Ryan Locker is representing the government.
The case is assigned to U.S. District Judge Robert Schroeder III and has been referred to Judge Baxter.
