BR man sentenced for defrauding contractor of $800K during const - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

BR man sentenced for defrauding contractor of $800K during construction of Impact Charter School

Impact Charter School (Source: WAFB) Impact Charter School (Source: WAFB)
BATON ROUGE, LA (WAFB) -

A Baton Rouge man has been sentenced to 78 months in federal prison for defrauding a construction contractor out of more than $800,000 for construction of the Impact Charter School in Baker, according to acting U.S. Attorney Corey Amundson.

Nathian D. Hossley, 51, was sentenced by U.S. District Judge John W. deGravelles on October 24 and ordered to pay restitution to Bouma Construction in the amount of $261,339.16 and $44,000 in restitution to MidSouth Bank. He will also be required to serve a three-year term of supervised release when he is released from prison.

Hossley pleaded guilty to wire fraud and money laundering in October 2016. The convictions stemmed from Hossley’s ownership in First Millennium Construction and his co-ownership of the local restaurant Spice Bistro.

Amundson says Hossley submitted a bid to Bouma in 2014 for his company, First Millenium to be a subcontractor in the construction project of Impact Charter School. Hossley gave Bouma a fraudulent application in which he lied about being about never being indicted or convicted of a crime, when Hossley had multiple federal convictions for wire fraud, bank fraud, conspiracy to commit bank fraud, and providing a false statement in connection with a bank loan, according to Amundson.

Bouma hired First Millennium for the project and the two companies entered into a contract for $1,221,163.00.

After construction on the school began in June of 2014, Hossley submitted multiple payment applications to Bouma that falsely understated or omitted money owed to certain subcontractors and vendors that he had hired to work on the job, officials say.

Hossley withheld from Bouma that he was using Bouma’s construction payments on personal expenditures and on Spice Bistro. Amundson says “Hossley furthered the scheme in October of 2014 by forging and causing one of his employees to forge the signatures of First Millennium subcontractors on joint checks and lien waivers.”

Amundson says Bouma made another payment of $96,125 to First Millennium for the Impact Charter School project, which Hossley quickly used to make a $29,474.34 payment on his American Express credit card and on a $22,000 transfer of funds to Spice Bistro. Hossley caused over $800,000 in losses to Bouma, according to the U.S. Attorney.

Amundson issued a statement on Hossley’s sentencing saying,

“Mr. Hossley met justice this afternoon in federal court and will be spending his days and nights in a well-deserved prison cell. Through fraud, he became involved in a project to build Impact Charter School and then stole from the project. Because of the defendant’s fraud, the general contractor was unable to pay employee bonuses and the school’s students had to start the year in a temporary facility. I commend Bouma Construction and the other companies and workers who assisted in this investigation and helped to bring this defendant to justice. I also greatly appreciate the dedicated and outstanding efforts of the prosecutors and FBI agents who worked on this important matter.”

The investigation was handled by the Baton Rouge office of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Ryan Crosswell, Rene Salomon, and Cal Leipold.

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