Arlington Man Sentenced In Scheme To Obtain COVID-19 Relief Loans

ALEXANDRIA, VA — An Arlington businessman was sentenced in federal court Wednesday to 21-months in prison and three years of supervised release for fraudulently obtaining millions of dollars in government contracts and COVID-19 emergency relief loans, according to a U.S. Justice Department release. He also received undeserved military service benefits by falsely claiming he had served in the U.S. Marine Corps.

As owner and president of Federal Government Experts (FGE) LLC, Robert S. Stewart Jr., 35, claimed he provided various services to the U.S. government, according to court documents. Between April 1 and May 14, 2020, he made false statements to the Federal Emergency Management Agency (FEMA) and the Department of Veterans Affairs (VA), in order to secure contracts to provide COVID-19 personal protective equipment (PPE), according to the DOJ release.

In addition to fraudulently acquiring loans from the Paycheck Protection Program and the Economic Injury Disaster Loan Program, Stewart obtained VA benefits, even though he had never served in the U.S. Marine Corps, as he claimed.

“In the early stages of the global pandemic, the defendant engaged in three egregious fraudulent schemes that he brazenly concocted to enrich himself,” Raj Parekh, acting U.S. Attorney for the Eastern District of Virginia, said, in the DOJ release.

“He falsely represented to the federal government that he could provide $38 million in life-saving N95 masks, and simultaneously, he fraudulently obtained over $1 million in pandemic assistance intended for deserving families and businesses. The defendant also continued an offensive seven-year scheme to obtain unearned veterans benefits by falsely claiming to have served as a Marine. This case underscores our commitment to holding accountable those who exploit essential government programs at the expense of veterans, front-line medical personnel, and vulnerable members of our communities.”

VA Inspector General Michael J. Missal called Stewart's actions crimes against the American people.

"Stewart fraudulently pursued contracts that were needed to supply VA hospital patients and staff with critical personal protective equipment during the COVID-19 pandemic, and stole taxpayer dollars intended to help local businesses stay afloat during the pandemic," Missal said in the DOJ release.

During the pandemic, Stewart obtained approximately $1,066,000 in government-backed loans through the Paycheck Protection Program and the Economic Injury Disaster Loan Program, which he used for personal expenditures, according to the release.

Although Stewart is a veteran of the U.S. Air Force, he was able to obtain $73,722.45 in VA benefits between September 2013 and October 2020, based on his false claim that he had also served in the U.S. Marines Corps, according to the release.

This case was investigated by the FBI Washington Field Office Criminal Division and the Inspectors General for the departments of Homeland Security and Veterans Affairs.