Date: May 1, 2023 Contact: newsroom@ci.irs.gov Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Jamie DePaepe, Andy Tsui, Special Agent in Charge of IRS Criminal Investigation Denver Field Office, and Special Agent in Charge of the Department of the Interior (DOI) Office of Inspector General, announced that William Ross Badoni and Elroy Harry made initial appearances in federal court on April 27 and April 25 on an indictment charging them with conspiracy to commit federal program fraud. The indictment also charges Badoni with one count of committing theft or bribery concerning programs receiving federal funds and eight counts of laundering of monetary instruments. Badoni, of Shiprock, and Harry, of Aztec, will remain on conditions of release pending trial, which has not been scheduled. A federal grand jury indicted Badoni and Harry on April 11. According to the indictment, Badoni was the owner and director of Badoni Construction Company, located in San Juan County. During the time relevant to the indictment, Harry was employed by Kinteel Residential Campus, Inc. (KRCI) as a maintenance supervisor. KRCI is a residential facility which offers free or low-cost housing and meal accommodations for students attending school in Aztec. As such, KRCI receives federal funds from the Department of Interior through the Bureau of Indian Education. From about April of 2018 to June of 2019, Badoni and Harry allegedly conspired to falsify and submit to KRCI bids in the names of other construction companies in order to make it more likely that Badoni’s bids would be selected for KRCI construction projects. Harry also allegedly provided Badoni with non-public information about construction projects and the bidding process. In return, Badoni allegedly gave, offered, or agreed to give things of value, namely sums of money, to Harry. Once Badoni had won the initial award of construction contracts, Harry and Badoni allegedly worked together to increase compensation for Badoni by submitting fraudulent “change orders” for KRCI’s approval. Further, Badoni and Harry allegedly caused KRCI to issue new construction contracts on an urgent basis under false pretenses in order to justify deviating from standard policies and procedures relating to KRCI’s bidding process. “This indictment shows IRS-Criminal Investigation’s commitment to ensuring fair and open competition opportunities for companies seeking to work with the federal government,” said Andy Tsui, IRS-CI Special Agent in Charge. “IRS-CI will continue working with our law enforcement partners to ensure an even playing field for those attempting to obtain federal contracts for their businesses.” “The Department of the Interior (DOI) Office of Inspector General (OIG) is committed to protecting our Indian Country schools and dormitories, so the students receive the education and opportunities they deserve, and the educators and staff have the resources they need,” said Jamie DePaepe, Special Agent in Charge for the DOI OIG. “We will continue to work with our law enforcement partners to aggressively investigate fraud in DOI programs to ensure those who defraud DOI programs are held accountable.” “We will ardently protect taxpayer dollars invested in our youth,” said United States Attorney Alexander M.M. Uballez. “Protecting the integrity of contracting processes involving federal funds helps make sure that when we invest in our communities, that investment pays off.” An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Badoni faces up to 20 years in prison and Harry faces up to 5 years in prison.
