05/14/2025

Bounced check leads to $12 Million fraud case

Defense Contract Audit Agency

Fort Belvoir, Va.  –  

DCAA Operations Investigative Support Division (OIS) auditors assisted a criminal investigation for two SP Global Institute, Inc. (SPGI) executives. Thomas Burns and Daniel Trolley were ordered to pay over $12 million in restitution, with Burns sentenced to 48 months imprisonment and Tolley sentenced to 14 months for theft of government property. They pled guilty to theft of government property after diverting over $12 million from an Air Force contract to pay for unrelated personal and business expenses. OIS auditors reviewed audit history and analyzed financial, accounting, wire and timesheet records.

According to court documents, SPGI was awarded a $196 million project. The contract relied upon “advance payments” from the Air Force Materiel Command, allowing SPGI to pay for research in a faster, commercial-like manner. These payments were made to the SPGI Autonomy Research Collaboration Network (ARCNet) account, intended to be held in trust for payment subrecipients. Only Burns and Tolley had access to the account and from March 2019 to June 2020, over $27 million in advance payments were made to the account.