Springfield, Illinois -- Rodger A. Heaton, United States Attorney for the Central District of Illinois, announced that a federal grand jury today charged Omar Shareef, age 48, of Palos Park, Illinois, with defrauding the state of Illinois of approximately $170,000. The five-count indictment charges Shareef, owner and president of the African American Contractor’s Association (AACA) and AACA Business Consulting Services Corporation with defrauding the Illinois Department of Transportation (IDOT) and the Department of Commerce and Economic Opportunity (DCEO) from about March 2004 until about June 2006.

According to the indictment, both companies essentially operated as the same firm at an office in Chicago. In addition, AACA represented itself as having other offices in various states across the country. Both companies operated as business consultants with the stated purpose of assisting minority firms with business development by offering management and technical assistance and other consulting services.

The Illinois Department of Transportation administers the federally-mandated Disadvantaged Business Enterprise program to provide contracting opportunities to small businesses owned and controlled by socially and economically-disadvantaged individuals and business, known as DBE firms. To facilitate participation of DBE firms in IDOT contracts, IDOT provided training and assistance to DBE firms at no cost.

In fall 2003, in response to IDOT’s solicitation for bids for contracts to provide supportive services for disadvantaged business enterprises, AACA was awarded two contracts on or about March 15, 2004: a $90,000 contract to provide management assistance and a $60,000 contract to provide technical assistance.

The indictment alleges Shareef repeatedly submitted and caused to be submitted fraudulent invoices that falsely represented that consulting services had been provided to DBE firms, when in fact, Shareef knew few services had been performed or work that was completed was substantially less than that represented in the invoices presented for payment. As part of the scheme, the indictment alleges AACA submitted invoices representing that AACA had created business plans for DBE firms, when in some instances, DBE firms had little contact with AACA, had not authorized creation of a business plan or had never even heard of AACA.

According to the indictment, between approximately April 2004 and August 2005, AACA submitted invoices to IDOT requesting payments totaling more than $122,000 for 1,900 hours of work performed. As a result of the scheme, the indictment alleges IDOT sustained a loss of as much as $70,000 or more.

On or about June 30, 2004, the Illinois Department of Commerce and Economic Opportunity awarded three separate grants totaling $300,700 to AACA Consulting to provide training and assistance to small and minority-owned businesses. The indictment alleges that at about the same time, Shareef negotiated the purchase of his personal residence in Palos Park, Illinois, and spent approximately $88,770 in DCEO grant funds for purchase of his residence and approximately $3,600 to pay for a trip to Disney World in Florida and other personal expenses.

When DCEO began an audit of AACA’s Consulting’s performance under the grants, Shareef allegedly submitted documentation falsely representing AACA Consulting had used the grant funds for their stated purposes. As a result of the scheme, the indictment alleges DCEO sustained a loss of as much as $100,000 or more.

If convicted, each offense of mail and wire fraud carries a maximum statutory penalty of 20 years in prison and a fine of $250,000. A summons will be issued for Shareef to appear in federal court in Springfield at a date to be determined by the U.S. Clerk of the Court.

The charges are the result of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service with the cooperation of the Illinois Department of Transportation and the Illinois Department of Commerce and Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass.

Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.