Lexington couple pleads guilty in grant fraud case
FRANKFORT, Ky. (WTVQ) – Kentucky Attorney General Andy Beshear announced the guilty pleas of a Lexington couple who defrauded the government out of thousands of dollars in connection with state grants awarded to them by the Cabinet for Economic Development.
Vesta Brue and Jerome Hahn, both 71, and the two corporations from which they operated, entered pleas in Franklin Circuit Court to 20 counts of tampering with public records, a Class D felony, according to prosecutors.
Brue and Hahn submitted fraudulent claims totaling over $70,000 concerning their use of grant funds between June 2012 and Oct. 2014. The state grants were matched by grants from the U.S. Department of Health and Human Services.
The pair were submitting invoices for the same expenses to both the state and federal grant administrators, as well as documenting money paid to employees for work that was never completed.
State Police investigated the case after being referred by the U.S. District Attorney in Lexington.
Brue and Hahn also pleaded guilty in U.S. District Court to federal charges.
Judge Phillip Shepherd set formal sentencing for Brue and Hahn October 6, 2017 at 9:00 a.m.