The case of a Columbus couple accused of defrauding a defense contractor out of $1.9 million was resolved today when the husband pleaded guilty and the wife’s charges were dismissed.
Once finance director of Omega Training Division after the Cubic Corporation acquired it in July 2008, William Scott Frazier, 43, pleaded guilty in federal court to two counts of wire fraud, one that involved his using a company credit card to buy a $47,250 sculpture titled “Anatomy of a Golfer” in Las Vegas.
That was on Aug. 31, 2010. Frazier also pleaded guilty to diverting $75,312 in Omega funds to an account for one of his two company credit cards, then using that card also for personal purchases. That was on Jan. 27, 2010, Assistant U.S. Attorney Melvin Hyde told Judge Clay Land.
Frazier’s wife Heather had been accused of lying to federal investigators and concealing her husband’s crimes. Hyde said those charges will be dismissed. Her attorney, William Mason, said Heather Frazier did not know of her husband’s fraud until investigators told her.
As part of his plea, William Frazier agreed to pay $1.9 million in restitution. Land set Frazier’s sentencing hearing for 2 p.m. Dec. 19. According to Hyde, each count carries a maximum penalty of up to 20 years in prison plus a $250,000 fine.
Frazier, whose Omega salary totaled about $90,000 a year, also had a sports memorabilia shop called Legacy Sports Cards. Investigators said he used Omega money also to make fictitious purchases from the shop to boost its sales.
Hyde said Frazier’s fraudulent use of company cards extended from Nov. 18, 2008, until Feb. 27, 2011, and besides sculptures included buying jewelry and casino chips.
Attorneys said the Omega Training Division of Cubic contracted with the U.S. Department of Defense to provide training services.