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 engaged in a scheme to defraud the Defense Logistics Agency, which supplies materials to all branches of the U.S. military. The scheme resulted in the government paying over one million dollars for products that were not as promised by Smith and his associates. Additionally, Smith failed to file corporate tax returns for his company for the years 2019 through 2023, omitting any report of the more than one million dollars received during those years.
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 from 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.
