Business manager sentenced to prison for crimes involving more than $2 million in Department of

Business manager sentenced to prison for crimes involving more than $2 million in Department of Defense contracts


COLUMBUS, Ohio – A California man was sentenced here today for crimes involving more than $2 million in Department of Defense contracts.

Timothy M. Kelly, 56, of Palos Verdes Estates, Calif., was sentenced to 30 months in prison for conspiring to commit wire fraud and for money laundering. Kelly served as the office manager for Emerson Company, which was owned by Daniel Emerson Norton, 52, formerly of Arlington, Va.

Norton was sentenced on Nov. 18 to 96 months in prison.

Norton and Kelly fraudulently secured approximately $2.2 million in contracts to provide critical parts to the U.S. Department of Defense, which they then filled with defective parts made in China, in violation of the Buy American Act. In total, Norton and Kelly supplied parts that did not meet military requirements for at least 130 contracts.

“The defendants’ actions put our military at risk, which is unfathomable,” IRS Criminal Investigation SAC Bryant Jackson said. “IRS Criminal Investigation followed the flow of money in this case in order to uncover the fraud, and we are proud to work with our law enforcement and military partners to investigate financial transactions that impact our country and our military.”

According to court documents, the Department of Defense (DOD) barred Emerson Company from doing business with the U.S. Government in 2011.

Read more: https://www.justice.gov/usao-sdoh/pr/business-manager-sentenced-prison-crimes-involving-more-2-million-department-defense