PGI Owner Pleads Guilty in Construction Contract Case

PHOENIX - Ernest Robert McFarland, 67, of Fort Meyers, Florida, pleaded guilty in federal district court in Phoenix on Monday, April 21, 2008 to six counts of making false statements in a scheme to fraudulently obtain funds via federal construction contracts. McFarland, owner and president of Pacific General Inc. (PGI), had been charged with conspiracy, false claims and false statements. McFarland admitted that between November 2003 and January 2004, he fraudulently obtained $348,652.99 by falsely certifying that PGI was paying its subcontractors for work on projects funded by federal construction contracts in the Grand Canyon National Park. Sentencing is set before Judge Wake on August 11, 2008. A conviction on each count of making false statements carries a maximum penalty of five years in federal prison, and a fine of $250,000 or both. In determining an actual sentence, Judge Neil V. Wake will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence. The investigation in this case was conducted by the Department of Interior Office of Inspector General, and the Federal Bureau of Investigation. The prosecution was handled by John R. Lopez IV, Assistant U.S. Attorney, District of Arizona, Phoenix.