Despite Fraud, Air Force Kept Using Beach Contractor

July 25, 2012

The Air Force continued doing business with a Virginia Beach government contractor for months after the company was found to have engaged in a $9.5 million fraud.

Federal contract documents show that the company, SCG, has collected more than $1.7 million from the Air Force for security training services since August, when a jury found that SCG and its chief executive, Jamie Smith, defrauded a Pennsylvania couple in an investment deal gone bad.

The couple, Craig and Mary Jo Sanford, have not recovered any of the $12.5 million they invested with Smith in 2007, their attorney said last week.

The Sanfords are pursuing Smith in state court in Virginia Beach in an effort to collect their money. 

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