A federal jury in Pittsburgh found Donald Smith guilty on March 17 of 13 counts related to federal fraud and tax violations, according to United States Attorney Troy Rivetti.
Smith, a 75-year-old resident of Pittsburgh, was convicted after a five-day trial before United States District Judge J. Nicholas Ranjan. The jury determined that Smith was guilty of eight counts of wire fraud and five counts of failing to file corporate tax returns.
Evidence presented during the trial showed that Smith defrauded the Defense Logistics Agency by causing the United States to pay over one million dollars for products that were not as promised. Additionally, Smith did not file corporate tax returns for his company for the years 2019 through 2023, despite receiving more than one million dollars in payments during that period.
Each count of wire fraud carries a maximum sentence of up to 20 years in prison and a fine up to $250,000 or twice the gross pecuniary loss from the offense. Each tax-related count carries a maximum sentence of up to one year in prison and a fine up to $100,000 or twice the gain from the offense. The actual sentence will be determined based on federal Sentencing Guidelines and any prior criminal history.
Sentencing will be scheduled by further order of the court. Assistant United States Attorneys William Guappone and Barbara K. Doolittle prosecuted the case. The investigation was conducted by the Defense Criminal Investigative Service, Internal Revenue Service-Criminal Investigation, and Naval Criminal Investigative Service.
