Fairbanks man Kevin Mahler recently agreed to a plea deal after being involved in a scheme to defraud the U.S. Government. Mahler admitted to his part in a conspiracy to inflate project costs and receive illegal payments on contracts for commercial flooring services at a U.S. Army facility in Fairbanks. He received over $100,000 in kickbacks over five years from the owner of a commercial flooring company, Benjamin McCulloch.
The scheme involved inflating the costs of flooring subcontracts administered by Fort Wainwright, with McCulloch paying Mahler roughly half of the proceeds. Mahler received various items including cash, a 1997 Ford Explorer, Apple watches, TVs, workout equipment, and an all-terrain vehicle from McCulloch, which he did not report to the IRS. McCulloch has already pleaded guilty to his role in the crimes.
Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division stated that defrauding U.S. taxpayers by exploiting U.S. Army facilities is a serious crime that will not be tolerated. Mahler could face up to 10 years in prison and a fine of $250,000 for his involvement in the fraud. The case is being investigated by multiple agencies, including the Antitrust Division’s San Francisco office, the U.S. attorney’s office for Alaska, the FBI Anchorage field office, and the IRS Criminal Investigation’s Seattle office.
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