NORTH CAROLINA MAN CHARGED WITH CONSPIRACY TO DEFRAUD ALABAMA POWER OUT OF $250,000

   BIRMINGHAM, AL -  Paul Anthony Garrett, 52, of Warne, North Carolina, was charged in U.S. District Court with conspiracy to defraud Alabama Power Company (“APCO”). This indictment is announced today by U.S. Attorney Alice H. Martin, and Carmen S. Adams, Federal Bureau of Investigation, Special Agent in Charge.

            “Greedy contractors hurt honest businesses and feed corrupt employees with kickbacks - prosecution is one antidote,” stated U.S. Attorney Alice H. Martin.

            The indictment alleges that Garrett and an APCO employee conspired to defraud Alabama Power Company through an overpayment of $250,000 from August 2001 to September 2004.  Garrett through his company, Clearmore Construction Company, contracted to provide land clearing services for APCO which totaled approximately $3 million.  Garrett submitted inflated invoices to his co-conspirator, an APCO employee, who was responsible for reviewing and approving the invoices submitted by Garrett  to APCO for payment.  After receiving payment of the inflated invoices, Garrett paid kickbacks of approximately $60,000  the APCO employee.

            Garrett now faces up to five years in federal prison and a fine of up to $250,000. 

            “I appreciate the cooperation among law enforcement and Alabama Power Company Security for their invaluable assistance in this matter which resulted in this indictment,” stated Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation.

            The investigation of this matter was conducted by Special Agents from the Federal Bureau of Investigation.  Assistant United States Attorney William C. Athanas is prosecuting the matter on behalf of the U.S. Government.

            Members of the public are reminded that an indictment contains only charges.  A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

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