Feds unveil potentially incriminating emails in Bibb schools’ fraud case

Federal prosecutors on Wednesday unveiled to jurors the most revealing aspects thus far of their fraud and money laundering case against a Macon technology firm’s CEO accused of swindling Bibb County public schools in a multimillion-dollar computing deal.

Live: Trial in alleged scheme to defraud Bibb County schools

Issac J. Culver III, head of Progressive Consulting Technologies Inc., the local firm that was hired in 2012 to oversee a massive computer upgrade within Bibb schools, faces charges of mail fraud, wire fraud and money laundering. If convicted, Culver could be forced to pay millions in fines and spend up to two decades behind bars.

The allegations against Culver stem from an alleged coverup that federal investigators contend happened when Culver and his company used an Ohio technology firm as a “pass through” to sell $3.76 million worth of computing devices and mask the fact that Culver’s company was acting as a vendor and selling the devices to Bibb schools.

Allen Stephen, the CEO of that Ohio firm, CompTech Computing Technologies, spent much of the morning on the witness stand here in U.S. District Court reading email exchanges that he and Culver, a business acquaintance, had in 2012 and early2013.

In applying to win the contract to oversee computing upgrades with the schools, Culver apparently needed recommendation letters. Prosecutors contend he asked Stephen for one, going so far as to write the text of a letter himself and forwarding it to Stephen.

The exchanges were noted in Culver’s indictment a year ago, but Wednesday’s testimony was the first time jurors were privy to details of their contents.

A message sent by Culver to Stephen in July 2012 asked Stephen, “Can you do me a letter of reference for local Bibb County Board of Ed? Of course it is totally made up.”

Stephen on Wednesday said that he complied, and his firm cut-and-pasted Culver’s words onto CompTech letterhead — language that included mention of Culver’s company managing a fictitious project for CompTech. The project allegedly invovled CompTech’s “Atlanta office,” which doesn’t exist.

The letter on Culver and Progressive’s behalf ended: “We highly recommend this dedicated group of professionals.”

Asked by prosecutor Elizabeth S. Howard why he agreed to send the missive, Stephen said,“I was trying to honor his request.”

Stephen later said he had trusted Culver.

To present further potentially damning sleight of hand on Culver and his company’s part, prosecutors showed jurors an invoice sent to Bibb schools. It was on paperwork from CompTech, billing the schools for upward of $2.5 million for 15,000 computing devices.

Prosecutors showed jurors an email they say Culver’s business partner, Dave Carty, sent to Stephen and CompTech in December 2012 on the eve of the schools’ deal: “Please transcribe this (price) quote to an invoice with your letterhead and send back to me as PDF.”

Stephen said his company did so.

Carty, since charged with similar crimes as Culver, is expected to stand trial later.

When Howard, the assistant U.S. attorney, asked Stephen his thoughts in hindsight about his dealings with Culver, Stephen said the transactions have “caused a great deal of pain for me.”

Stephen later added, “The whole transaction was based on trust,” but he at some point sensed “there was something fishy. … It became, and still is, a thorn.”

When John Garland, a defense attorney for Culver, asked Stephen if Stephen ever asked Culver his side of the story, Stephen acknowledged asking Culver, “What is going on here?”

Stephen, though, did not elaborate.

As the day’s testimony wound down, Stephen’s administrative assistant, Missy Shaw, took the stand.

Shaw told of email exchanges between Progressive and CompTech.

Garland asked her if Culver or his firm ever asked CompTech to hide the companies’ dealings from Bibb schools.

“Not that I’m aware of,” Shaw said.

Testimony in the case, which could wrap up by week’s end, resumes Thursday morning at 8.

This story was originally published July 18, 2018 at 5:39 PM.