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Man Admits Defrauding Program For Disabled Veterans

Brian Kelly
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ST. LOUIS (KMOX)-A retired civil engineer has admitted hiring a disabled veteran, so his company could take advantage of a federal program aimed at helping small businesses owned by disabled vets,

Federal prosecutors say 71-year-old Joseph Medlinger of Dupo, Il., and his co-conspirator doing business as Gateway Contractors, listed the disabled veteran as the owner of what was actually a shell company.

Then, between 2007 and 2010, the three allegedly bribed a now-retired VA employee with luxury box sporting event tickets, lunches and interest free loans.

As a result, the shell company got $3.4 million dollars in contracts at the VA medical center and Jefferson Barracks National Cemetery.

Medlinger has pleaded guilty to one count of fraud. He faces up to five years in prison and a quarter million dollar fine.

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