Indictment, United States v. Michael David Barker, No. 2:24-cr-00194 (S.D. W. Va.), Doc. 1 (December 10, 2024)

Summary

Indictment in the United States District Court for the Southern District of West Virginia, dated December 10, 2024, against Michael David Barker, described as the maintenance director of the Boone County Board of Education. It alleges Barker and Jesse Marks, named but not indicted, owner of Rush Enterprises, conspired from about November 2019 to defraud the Board of approximately $3,400,000 through fraudulent invoices for janitorial and custodial products, with Barker receiving approximately $2,000,000. As an example, invoices billed 4,993 cases of hand soap when about 829 cases were received. The charges cited are conspiracy under 18 U.S.C. § 1349, mail fraud under 18 U.S.C. § 1341, 18 U.S.C. § 666(a)(1)(A) and money laundering under 18 U.S.C. § 1957(a), with forfeiture of at least $2,000,000.00.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Text recognized from a scanned document; may contain errors.

Case 2:24-cr-00194 Document1 Filed 12/10/24 Page1 of 16 PagelD#: 1

UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF WEST VIRGINIA
CHARLESTON GRAND JURY 2023
DECEMBER 10, 2024 SESSION

UNITED STATES OF AMERICA

v. Criminal No. 2 - 2U-cr-/G4¥
18 U.S.C. § 1349
MICHAEL DAVID BARKER 18 U.S.C. § 1341
18 U.S.C. § 666(a) (1) (A)
18 U.S.C. § 1957 (a)

INDICTMENT

The Grand Jury charges:

INTRODUCTION

ali From in or about November 2019 through in or about
December 2023, defendant MICHAEL DAVID BARKER, and unindicted co-
conspirator Jesse Marks, named but not indicted herein, entered
into a scheme to defraud the Boone County Board of Education out
of approximately $3,400,000. Defendant MICHAEL DAVID BARKER used
his position as the maintenance director of the Boone County Board
of Education to falsify documents showing that the Boone County
Board of Education was receiving a large amount of janitorial and
custodial products, such as, hand soap, trash can liners, and
facemasks, from Jesse Marks’ company, Rush Enterprises, when in
fact, the Boone County Board of Education was only receiving a

small portion of those products.
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 2 of 16 PagelD #: 2

Biss Defendant MICHAEL DAVID BARKER and Jesse Marks, named
but not indicted herein, the owner of Rush Enterprises, conspired
to overbill the Boone County School System for the undelivered
products and split the proceeds from the fraudulent scheme, with
defendant MICHAEL DAVID BARKER receiving approximately $2,000,000
of the proceeds from the fraudulent scheme. Defendant MICHAEL
DAVID BARKER then used his share of the proceeds to make
extravagant purchases for his personal benefit.

3. As part of the scheme, defendant MICHAEL DAVID BARKER,
acting in his capacity as the maintenance director, submitted
fraudulent invoices and purchase orders that caused the Boone
County Board of Education to pay for more than $4,000,000 of
products from Rush Enterprises. During calendar years 2022 and
2023, for example, defendant MICHAEL DAVID BARKER submitted
invoices to the Boone County Board of Education which caused them
to pay Rush Enterprises for 4,993 cases of hand soap when, in
fact, they had only received approximately 829 cases. Defendant
MICHAEL DAVID BARKER profited from the Boone County Board of
Education’s purchase of approximately 4,164 cases of hand soap
from Rush Enterprises that it never received. The Boone County
Board of Education paid approximately $474,696 hand soap that was

never delivered.
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 3 of 16 PagelD #: 3

BACKGROUND
At all times relevant to this Indictment:

4, Defendant MICHAEL DAVID BARKER was the Maintenance
Director for the Boone County Board of Education from in or about
2015 through in or about November 2023 and was responsible for
ordering supplies necessary for the maintenance of the Boone
County Schools.

5s Jesse Marks, named but not indicted herein, was the
sole owner of Rush Enterprises.

6. Rush Enterprises was a sole proprietorship located in
Rush, Kentucky and had an office in Kenova, West Virginia.

th The Boone County Board of Education was a corporation
and political subdivision of the State of West Virginia that
supervised and controlled the Boone County School District. The
Board was located at or near Madison, Boone County, West Virginia.
The Boone County Board of Education’s fiscal year ran from July
lst through June 30th of each year.

8. The United States Postal Service was an agency of the
United States whose basic function was to provide postal services.

9. Mac’s Cycle Supply was a business located in Madison,
Boone County, West Virginia, that was engaged in vehicle sales
and was a financial institution pursuant to 31 U.S.C. §

5312 (a) (2) (T).
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 4 of 16 PagelD #: 4

10. State Equipment, Inc. was a business located in Cross
Lanes, Kanawha County, West Virginia, that was engaged in vehicle
sales and was a financial institution pursuant to 31 U.S.C. §
5312 (a) (2) (T).

The Conspiracy and Scheme to Defraud

11. Defendant MICHAEL DAVID BARKER entered into an agreement
with Jesse Marks, named but not indicted herein, to submit
fraudulent invoices and purchase orders to the Boone County Board
of Education to receive payment for custodial and janitorial
supplies and other products that were never received.

12. It was a purpose of the conspiracy for defendant MICHAEL
DAVID BARKER and Jesse Marks, named but not indicted herein, to
enrich themselves by obtaining money from the Boone County Board
of Education through submission of fraudulent invoices and
purchase orders. The submission of these fraudulent invoices and
purchase orders caused the Boone County Board of Education to use
the United States Postal Service to mail checks to Rush
Enterprises.

Manner and Means

13. In or about August 2020, defendant MICHAEL DAVID BARKER
started ordering custodial and janitorial supplies from Jesse
Marks, named but not indicted herein, through Rush Enterprises.

14. Throughout the period of the conspiracy, defendant

MICHAEL DAVID BARKER called Jesse Marks, named but not indicted
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page5 of 16 PagelD#:5

herein, on numerous occasions and told him the quantity and kind
of supplies and products to have Rush Enterprises deliver to the
Boone County Board of Education warehouse in Foster, Boone County,
West Virginia. During these calls, defendant MICHAEL DAVID BARKER
told Jesse Marks, named but not indicted herein, not to submit an
invoice for the actual supplies and products delivered.

15. Defendant MICHAEL DAVID BARKER created fraudulent
invoices in the name of Rush Enterprises, for the deliveries that
‘included quantities of supplies and products that were never
delivered. Defendant MICHAEL DAVID BARKER, as the Maintenance
Director for the Boone County Board of Education, signed the
invoices verifying that the products listed were received by the
warehouse, when in fact he knew that a large percentage of the
products listed on the invoices were never sent to nor received
by the Boone County Board of Education.

16. Defendant MICHAEL DAVID BARKER directed his secretary
to sign the purchase orders based on the fraudulently created
invoices, and submit the invoices and purchase orders to the Boone
County Board of Education’s central office.

17. The Boone County Board of Education’s central office
reviewed the invoices and purchase orders to ensure the paperwork
was properly completed. The Boone County Board of Education’s

central office relied on the invoices and purchase orders
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 6 of 16 PagelD #: 6

submitted at the direction of defendant MICHAEL DAVID BARKER when
preparing checks payable to Rush Enterprises.

18. The Boone County Board of Education’s central office
then sent those checks to Rush Enterprises at the address listed
on the fraudulent invoices through the mail using the United
States Postal Service.

19. When Jesse Marks, named but not indicted herein,
received checks from the Boone County Board of Education, he
deposited those checks into his business account for Rush
Enterprises.

20. Defendant MICHAEL DAVID BARKER and jewse Marks, named
but not indicted herein, agreed to split any amount paid by the
Boone County Board of Education for products or supplies that were
not received between themselves.

21. Jesse Marks, named but not indicted herein, then wrote
checks from his business account from Rush Enterprises to
himself and cashed those checks at multiple banks. Jesse Marks,
named but not indicted herein, used the money withdrawn from the
checks made out to himself to pay defendant MICHAEL DAVID BARKER
his share of the proceeds from the fraudulent billing. Jesse
Marks, named but not indicted herein, delivered cash payments to
defendant MICHAEL DAVID BARKER in person at various locations in

Boone County, West Virginia.
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 7 of 16 PagelD #: 7

COUNT ONE
(Conspiracy to Commit Mail Fraud)

22. From at least in or about March 2020 through in or
about December 2023, in the Southern District of West Virginia
and elsewhere, defendant MICHAEL DAVID BARKER, Jesse Marks, named
but not indicted herein, and other persons both known and unknown
to the Grand Jury, did knowingly and intentionally conspire and
agree with each other to commit offenses against the United
States, that is mail fraud, in violation of 18 U.S.C. §1341.

In violation of Title 18, United States Code, Section 1349.

COUNTS TWO THROUGH TWELVE
(Mail Fraud)
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 8 of 16 PagelD #: 8

23. The Grand Jury re-alleges and incorporates by reference
paragraphs 1 through 22 of this Indictment.

24. On or about the dates identified below, for the purpose
of executing the scheme and artifice to defraud described in Count
One, and for the purpose of obtaining money and property by means
of materially false and fraudulent pretenses, representations,
and promises, defendant MICHAEL DAVID BARKER, knowingly caused to
be delivered by mail any matter or thing according to the
directions thereon and at the place at which it was directed to

be delivered by the person to whom it is addressed, specifically:

Count | Date (on or about) | Description Carrier

2 March 16, 2021 A check from the United States
Boone County Board Postal Service
of Education in the
amount of
$42,120.50

3 May 4, 2021 A check from the United States
Boone County Board Postal Service
of Education in the
amount of

$58, 822.50

4 June 8, 2021 A check from the United States
Boone County Board Postal Service
of Education in the
amount of

552; 363.50

5 November 16, 2021 A check from the United States
Boone County Board Postal Service
of Education in the
amount of

6 December 7, 2021 A check from the United States
Boone County Board Postal Service
of Education in the
amount of
$80,879.25
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 9 of 16 PagelD #: 9

if February 22, 2022 A check from the United States
Boone County Board Postal Service
of Education in the

amount of

8 October 4, 2022 A check from the United States
Boone County Board Postal Service
of Education in the

amount of

9 December 15, 2022 A check from the United States
Boone County Board Postal Service
of Education in the

amount of
$124,145.00

10 April 19, 2023 A check from the United States
Boone County Board Postal Service
of Education in the

amount of
$122,251.25

o Bai October 17, 2023 A check from the United States
Boone County Board Postal Service
of Education in the
amount of

$172,325.00

12 November 7, 2023 A check from the United States
Boone County Board Postal Service
of Education in the
amount of
$147,325.00

All in violation of Title 18, United States Code, Section
1341.

COUNT THIRTEEN THROUGH FIFTEEN
(Theft Concerning Programs Receiving Federal Funds)

9
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 10 of 16 PagelD #: 10

25. The Grand Jury re-alleges and incorporates by reference
paragraphs 1 through 22 of this Indictment.

26. The Boone County Board of Education received federal
funds annually in excess of $10,000 during each of the fiscal
years beginning on July 1, 2021, July 1, 2022, and July 1, 2023.

27. During each of the fiscal years listed below, in the
Southern District of West Virginia, defendant MICHAEL DAVID
BARKER, being the Maintenance Director for the Boone County School
District, an agent of the ROoré County Board of Education in Boone
County, West Virginia, and thus being an agent of a local
government or agency thereof receiving in the one year period for
each fiscal year beginning on July 1, 2021, and ending June 30,
2024, benefits in excess of $10,000 under Title 1 grants, did
knowingly embezzle, steal, obtain by fraud, and intentionally
misapply property worth at least $5,000 and owned by, and under

the control of such government agency, specifically:

Count | DATE (between Property
on or about)

13 Between July 1, |Money in an amount more than $5,000.
2021 and June
30, 2022

14 Between July 1, |Money in an amount more than $5,000.
2022, and June
30, 2023

LS Between July 1, |Money in an amount more than $5,000.
2023, and
December 1, 2023

10
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 11 of 16 PagelD #: 11

In violation of Title 18, United States Code, Section

666(a) (1) (A).

11
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 12 of 16 PagelD #: 12

COUNTS SIXTEEN THROUGH EIGHTTEEN
(Money Laundering)

28. The Grand Jury re-alleges and incorporates by reference
paragraphs 1 through 27 of this Indictment.

29. On or about the dates listed below, each of which
constitutes a separate count, at or near Danville, Boone County,
West Virginia, and Cross Lanes, Kanawha County, West Virginia,
both within the Southern District of West Virginia, defendant
MICHAEL DAVID BARKER did knowingly engage and attempt to engage
in the following monetary transactions by, through, or to a
financial institution, affecting interstate commerce, in
criminally derived property of a value greater than $10,000, such
property having been derived from a specified unlawful activity,
that is, mail fraud in violation of 18 U.S.C. § 1341, and theft
concerning programs receiving Federal funds in violation of 18

U.S.C. § 666:

Count | DATE (on or Monetary Transaction
about)
16 June 18, 2021 Used United States currency in the

amount of $16,000 and a personal check
in the amount of $5,997.85 for the
purchase of a Can-Am Utility Vehicle
from Mac’s Cycle Supply

L7 July 21, 2021 Used United States currency in the
amount of $9,000 and a personal check in
the amount of $3,000 as a down payment
towards the purchase of a Case Compact
Track Loader from State Equipment Inc.

18 April 5, 2022 Used United States currency in the
amount of $20,000 as a down payment
towards the purchase of a Case Compact
Excavator from State Equipment Inc.

2
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 13 of 16 PagelD #: 13

All in violation of Title 18, United States Code, Section

1957 (a).

13
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 14 of 16 PagelD #: 14

Notice of Forfeiture

The allegations contained in this Indictment are hereby
realleged and incorporated by reference for the purpose of
alleging forfeiture pursuant to 18 U.S.C. §§ 981(a)(1)(C),
982(a) (1), 982(a) (2) (A), 982(a) (3), 28 U.S.C. § 2461 and Rule 32.2
of the Federal Rules of Criminal Procedure.

Pursuant to 18 U.S.C. §§ 981(a)(1)(C), 982(a) (2) (A), 28
U.S.C. § 2461 and Rule 32.2 of the Federal Rules of Criminal
Procedure, upon conviction of the offenses in violation of 18
U.S.C. §§ 1341 and 1349, as set forth in Counts One through Twelve
of this Indictment, defendant MICHAEL DAVID BARKER shall forfeit
to the United States of America, any property constituting, or
derived from, proceeds obtained, directly or indirectly, as a
result of such violation(s).

Pursuant to 18 U.S.C. § 982(a) (3) and Rule 32.2 of the Federal
Rules of Criminal Procedure, upon conviction of the offenses in
violation of 18 U.S.C. 666(a)(1) (A), as set forth in Counts
Thirteen through Fifteen of this Indictment, defendant MICHAEL
DAVID BARKER shall forfeit to the United States of America, any
property constituting, or derived from, proceeds obtained,
directly or indirectly, as a result of such violation(s).

Pursuant to 18 U.S.C. § 982(a)(1) and Rule 32.2 of the Federal

Rules of Criminal Procedure, upon conviction of the offenses in

14
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 15 of 16 PagelD #: 15

violation of 18 U.S.C. § 1957(a), as set forth in Counts Sixteen
through Eighteen of this Indictment, defendant MICHAEL DAVID
BARKER shall forfeit to the United States of America, any property
constituting, or derived from, proceeds obtained, directly or
indirectly, as a result of such violation(s).

The property to be forfeited includes, but is not limited
to, a money judgment in the amount of at least $2,000,000.00, such
amount constituting the proceeds of violations set forth in this
Information.

If any of the property described above, as a result of any

act or omission of the defendant:

ais cannot be located upon the exercise of due
diligence;
b. has been transferred or sold to, or deposited with,

a third party;

Es has been placed beyond the jurisdiction of the
court;

d. has been substantially diminished in value; or

e. has been commingled with other property which

cannot be divided without difficulty,
the United States of America shall be entitled to forfeiture of
substitute property pursuant to 21 U.S.C. § 853(p), as

incorporated by 18 U.S.C. § 981(a) (1) (C) and 28 U.S.C. § 2461.

15
Case 2:24-cr-00194 Document1 Filed 12/10/24 Page 16 of 16 PagelD #: 16

All pursuant to Title 18, United States Code, Section

981(a)(1)(C) and Title 28, United States Code, Section 2461.

UNITED STATES OF AMERICA

WILLIAM S. THOMPSON
United States Attorney

By:

GABRIEL C. PRICE
Assistant United States Attorney

16


File and source

File

1-indictment.pdf

Size

2,830,317 bytes

SHA-256

1ed2391cf715baa2d10c7a0b7c8bebf45f14a41cc77c76c87398bc38373b9256

Our copy

1-indictment.pdf

Original

storage.courtlistener.com