U.S. Attorney Jessica D. Aber | U.S. Department of Justice
U.S. Attorney Jessica D. Aber | U.S. Department of Justice
A Midlothian man pled guilty yesterday to mail fraud, federal program theft, and tax evasion in connection with a scheme to misappropriate millions of dollars from the Virginia Department of Health (VDH).
According to court documents, beginning on August 10, 2013, Adam Lamar Harrell, 41, was an employee of VDH and on September 10, 2019, became the Associate Director of the Office of Emergency Medical Services (OEMS). As OEMS’s Associate Director, Harrell was responsible for managing Virginia’s emergency response programs, epidemiology research, and the information technology systems that Virginia’s emergency medical service providers rely on.
Harrell used his position to direct payments from VDH to a company he registered and controlled, Strategic Tech Innovations, LLC. Harrell concealed his ownership of and affiliation with Strategic Tech from VDH and OEMS and used this entity to embezzle funds from his employer through two separate means.
From January 2021 through May 2023, Harrell created 15 fraudulent invoices for services and technology that Strategic Tech would purportedly provide to OEMS. Harrell set exorbitant prices for various line items on the invoices while knowing most items would not be provided by Strategic Tech. Without OEMS’s knowledge or approval, Harrell submitted these fraudulent invoices to the Western Virginia EMS Council (WVEMS), a regional emergency medical services council that serves as a pass-through for OEMS payments to vendors. Each invoice was paid by WVEMS with OEMS funds. By directing the invoices to WVEMS instead of Accounts Payable at OEMS, Harrell circumvented the requirement that Strategic Tech be approved as a vendor to VDH and OEMS and evaded scrutiny by the Accounts Payable department. As Associate Director of OEMS, Harrell unilaterally approved these fraudulent invoices.
Harrell deposited each check he illegally received from WVEMS into the Strategic Tech checking account he controlled and used the funds for personal expenses including real estate purchases, luxury vehicles, dozens of firearms, and jewelry. In total, Harrell received $4,337,395 in OEMS funds.
On March 9, 2021, Harrell filed a joint federal income tax return with his spouse for tax year 2020. On IRS Form Schedule C: Profit or Loss from Business," he reported being the sole proprietor of Strategic Tech with $193076 in gross receipts but falsely reported expenses totaling $200340 resulting in a net loss of $7264. This lowered his taxable income fraudulently generating a refund of $934. Subsequently he ceased reporting any income from Strategic Tech on federal income tax returns filed for tax years 2021 22 and 23. From November 2020 through March 2024 Harel evaded taxes totaling $188028734.
Harrel is scheduled to be sentenced on November20. He faces up t0 years i prison Actual sentences fr feder crimes typically less than maximum penalties A federal district court judge will determine any sentence after considering U.S Sentencing Guidelines other statutory factors
Jessica D Aber US Attorney Eastern District Virginia Stanley M Meador Special Agent Charge FBI Richmond Field Office Kareem A Carter IRS Criminal Investigation Special Agent Charge Washington DC Field Office made announcement after US Magistrate Judge Summer L Speight accepted plea
Virginia State Police Office State Inspector General provided significant assistance investigation case
Assistant US Attorneys Thomas A Garnett Kashan Pathan prosecuting case
copy press release located website US Attorney's Office Eastern District Virginia Related court documents information located website District Court Eastern District Virginia PACER searching Case No324-cr-92
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