William S. Thompson U.S. Attorney | U.S. Attorney for the Southern District of West Virginia
Jesse Marks, a 65-year-old resident of Rush, Kentucky, has pleaded guilty to conspiracy to commit mail fraud in connection with a scheme that defrauded Boone County Schools out of $3.4 million. Marks admitted to collaborating with Michael David Barker, the former maintenance director for Boone County Schools, to overbill the school system.
Court documents reveal that Marks was the owner and operator of Rush Enterprises when Barker approached him in November 2019 about providing custodial and janitorial supplies to Boone County Schools. Marks agreed and began supplying various products such as hand soap, trash can liners, facemasks, face shields, and hand sanitizer.
The fraudulent activity commenced in November 2019 when Barker submitted inflated invoices on behalf of Rush Enterprises to Boone County Schools. These invoices exaggerated the number of products delivered. The school system mailed checks to Rush Enterprises based on these fraudulent invoices.
Marks deposited these checks into his business account and wrote himself checks which he cashed at different banks. He then delivered some of the cash to Barker in manila envelopes. Initially, they agreed to split the profits evenly after deducting actual product costs but later altered their agreement in October 2020 so that Barker received 55 percent of the fraudulent profits.
Marks estimated that about 80 percent of payments received from Boone County Schools were for undelivered products, totaling approximately $3,448,571.85 out of $4,310,714.82.
Marks is scheduled for sentencing on June 16, 2025. He faces up to 20 years in prison, three years of supervised release, and a $250,000 fine. Restitution will be determined by the court.
An indictment was returned against Barker on December 11, 2024. He faces charges including mail fraud and money laundering with his trial set for April 15, 2025. An indictment is an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting United States Attorney Lisa G. Johnston praised the investigation by multiple agencies including the FBI and IRS-CI among others.
United States District Judge Thomas E. Johnston presided over the hearing while Assistant United States Attorney Gabriel Price is prosecuting.
###
