Feds building case against Milwaukee business owner who scammed government of over $250 Million
MILWAUKEE (CBS 58) -- Two summers ago CBS 58 told you about a business raid at a Milwaukee office park. Now, we're learning more about the case investigators are building against that owner.
Court filings over the last year, including one just this week, show that the government is trying to get back a ski community condo, a corvette, and over two million dollars all obtained through alleged fraud.
A lakefront home in Muskego sits on a $120,000 piece of land, but the money used to pay for it may have come from a complicated scam defrauding the federal government of hundreds of millions of dollars.
Investigators say they are not ready to file charges yet but this is the next step in the investigation.
CBS 58 was there when the FBI raided a business named Sonag at 55th and florist in Milwaukee in August, 2016. At the time, we knew the investigation involved small business government programs for immigrants and veterans. Now, new federal complaints detail allegations, against the owner, saying he took advantage of those programs to get government contracts he wasn't truly eligible for. He ended up scamming the government out of 268 million dollars between 2004 and 2016.
Federal officials say he falsified documents showing who really owned the company listing employees eligible to receive benefits that he could not. The district attorney claims the suspect used some of that money for things like plastic surgery, trips to a Las Vegas casino, and a corvette.
The person named in the suit hasn't yet been criminally charged.