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Indictment Alleges Contract Fraud at Clay National Guard Center in Marietta

Two Atlanta women were indicted in federal court in a conspiracy to pay vendors for work that was never completed in exchange for kickbacks.

A former contracting official with the Ga. Department of Defense has been indicted for allegedly awarding contracts for work that was never done in exchange for illegal kickbacks.

The 10-count indictment charges Raytosha Elliott, 33, and Lakeysha Ellis, 36, both of Atlanta, with two counts of conspiracy and seven counts of wire fraud.  Elliott is also charged with accepting a bribe or kickback as a public official.

According to U.S. Attorney Sally Quillian Yates and court information, Elliott worked for the Ga. Department of Defense from May 2007 through April 2012. This state agency coordinates and supervises the Ga. National Guard.  Elliott worked out of the Clay National Guard Center, located at Dobbins Air Reserve Base, in Marietta. She worked with engineering firms on bids and oversaw no-bid purchase orders. Projects that cost less than $5,000 did not have to go through a competitive bidding process, allowing Elliott to award the contracts, certify the work was completed and make sure the vendors were paid.

Elliott allegedly awarded many of these contracts to companies run by her friends and associates, including Ellis. In return, the friends and associates allegedly paid Elliott kickbacks of 50 percent of the contracts. The work was never done.

Elliott awarded Total Source Solution, owned by Ellis, 17 contracts with a total value of approximately $75,000.  Instead of completing the electrical work, landscaping and HVAC work, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, merchandise, and even liposuction treatment for Ellis.

The indictment alleges Ellis and Elliott had a similar fraud scheme they ran from January 2009 through May 2011, when Ellis was an accountant at Baumueller-Nuermont Corp., an industrial equipment company with offices in Norcross.  Her job responsibilities included payroll and paying vendors.


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