Craig Jacob was sentenced to one year and one day in prison for his participation in an inflated billing scheme, Acting United States Attorney Michael W. Reap announced today. In addition to the prison sentence Mr. Jacob was ordered to pay $91,000 restitution jointly with co-defendant Peter Knebel.
Craig Jacob was employed at CJ’s Delivery and More, Inc., St. Louis, MO. Co-defendant Peter Knebel was employed at Office Furniture Resources, Milwaukee, WI, which buys and sells office furniture and as well as installing and setting it up at businesses around the Midwest.
CJ's Delivery and More, Inc. delivered the office furniture and equipment and sometimes assisted in the installation and set up of furniture at businesses in the St. Louis area.
Centene Corporation was a client of Office Furniture Resources and CJ's Delivery and More, Inc. From time to time, Centene would purchase office furniture and equipment from Office Furniture Resources and also pay for the delivery and set-up services associated with contracts with Office Furniture Resources and CJ's Delivery and More, Inc.
Jacob and Knebel inflated the bills for the man hours needed to deliver and set up the office furniture and equipment at Centene facilities, split the inflated amount among themselves unbeknownst to Centene, who would pay a fraudulently inflated bill.
Between January 2007 and October 2008, co-defendant Knebel received approximately $45,500 from Jacob as his share of the fraudulently inflated bills. Jacob would keep the remainder of the fraudulently inflated amount, which was approximately the same as received by co-defendant Knebel.
Jacob, 48, St. Charles, MO, pleaded guilty in July to one felony count of mail fraud, and appeared today for sentencing before United States District Judge Charles A. Shaw.
Co-defendant Peter Knebel, 39, Waukesha, WI, entered a guilty plea in federal court in Milwaukee, WI, and will be sentenced at a later date.
Reap commended the work on the case by the Postal Inspection Service.
