Date: April 7, 2025
Contact: newsroom@ci.irs.gov
Charleston, WV — Michael David Barker of Foster, pleaded guilty today to conspiracy to commit mail fraud. Barker admitted to a scheme to defraud the Boone County Schools system by more than $3.4 million while employed as the maintenance director.
According to court documents and statements made in court, from about November 2019 through December 2023, Barker ordered custodial and janitorial supplies for Boone County Schools from Jesse Marks and his company, Rush Enterprises. These supplies included hand soap, trash can liners, face masks, face shields, and hand sanitizer.
Barker admitted that he and Marks agreed that Rush Enterprises would overbill the Boone County Board of Education for these supplies. As part of this scheme, Barker approved invoices on behalf of Rush Enterprises that significantly inflated the number of products that were actually delivered to Boone County Schools. Barker submitted these fraudulent invoices to the Boone County Board of Education, which relied on them to mail checks to Rush Enterprises using the United States Mail.
Marks deposited the checks from Boone County Schools into the business bank account for Rush Enterprises, wrote himself checks on that account that he cashed at various banks, and personally delivered some of that cash to Barker in manila envelopes. Barker admitted that he spent the cash delivered by Marks to buy vehicles and equipment and make substantial improvements to his residence in Foster.
Marks deducted the cost of the products actually delivered to Boone County Schools from the proceeds of the overbilling scheme. Boone County Schools paid Rush Enterprises $4,310,714.82 from in or about November 2019 through in or about December 2023. Barker admitted that approximately 80 percent of the total payments received by Rush Enterprises, or $3,448,571.85, was based on fraudulent invoices.
Barker is scheduled to be sentenced on July 31, 2025, and faces a maximum penalty of 20 years in prison, up to three years of supervised release, and a $250,000 fine. Barker also owes $3,400,000 in restitution.
“Mr. Barker took advantage of COVID-19 pandemic relief funds and put his own greed above the interests of the Boone County School system and the children it serves,” said Acting United States Attorney Lisa G. Johnston. “His actions caused serious reputable harm and diminished the trust in the Boone County School system.”
Marks of Rush, Kentucky, pleaded guilty on February 27, 2025, to conspiracy to commit mail fraud and is scheduled to be sentenced on July 28, 2025.
Barker’s parents, Michael P. Barker and Lana Barker both of Foster, pleaded guilty on March 3, 2025, to structuring transactions with one or more domestic financial institutions. They admitted to making 11 cash deposits to their bank accounts totaling $97,215 starting on or about November 7, 2023, through on or about November 28, 2023. Financial institutions are required to report cash deposits of more than $10,000, and federal law prohibits structuring multiple cash deposits to avoid this reporting requirement. The deposits were in amounts ranging from $8,000 to $9,500 specifically to avoid the currency reporting requirement. The structuring scheme was uncovered by the same investigation that resulted in the indictment of their son. Michael P. Barker is scheduled to be sentenced on June 23, 2025, and Lana Barker is scheduled to be sentenced on July 1, 2025.
Johnston made the announcement and commended the investigative work of the Internal Revenue Service Criminal Investigations (IRS-CI), the Federal Bureau of Investigation (FBI), the U.S. Department of Education-Office of Inspector General, the West Virginia State Police, and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU), and the assistance provided by the West Virginia Department of Education.
“This case is a result of outstanding teamwork and reflects the tireless dedication of this office and its law enforcement partners to bring to justice those who stole from the American people during a national emergency,” Johnston said. “We will continue to pursue all available avenues to recover defrauded public funds and identify and prosecute those responsible.”
United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Gabriel Price is prosecuting the case.
IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 14 attaché posts abroad.