Tuesday, March 31, 2020

Fulton County Contract Supplier Guilty Of Giving Kickbacks Tied To Construction Of Fulton County Detention Center

PADUCAH, Ky. – A Union City, Tennessee, business owner and contract supplier pled guilty today in United States District Court before Senior U.S. District Judge Thomas B. Russell for his role in a conspiracy to defraud Fulton County citizens, through kickbacks and concealment of costs associated with work performed on the 2015 Fulton County Detention Center expansion, announced United States Attorney John E. Kuhn, Jr.

Daniel C. Larcom, 42, pled guilty to three charges including Honest Services Wire Fraud and Wire Fraud for his role in a conspiracy that allegedly involved then Fulton County Jailer Ricky D. Parnell and others.

Larcom is the owner of Danny Larcom Heating & Air, Inc., whose company was awarded a $415,000 contract to install HVAC systems as part of the $3.3 million expansion of the Fulton County Detention Center.

In 2011 Larcom installed a new $4,800 heating and air unit at Parnell’s home and was not paid for the unit but was promised addition contracts involving the jail. In around 2012 or 2013, Parnell contracted with Larcom to replace HVAC equipment in the old jail with new equipment. Larcom estimated the cost at $90,000 for ten new units. Parnell advised Larcom to make the contract for $100,000 and add high end thermostats and that he wanted $5,000 cash for awarding Larcom the contract. 

After a couple months, Larcom gave Parnell the $5,000 he demanded by putting $5,000 cash into a coffee cup and meeting Parnell in his pick-up truck. While Larcom was in the truck, Parnell entered the truck, did not say anything, and took the cup with the $5,000 cash kickback. The cash was in $100 bills. Larcom believed that Parnell would not give Larcom any future work if he did not pay the $5,000 kickback. 

Further, Parnell asked Larcom to install the HVAC systems for the jail expansion project. Larcom estimated the job would cost $380,000 to $400,000. Parnell allegedly told Larcom to make a bid for $415,000. With Parnell’s endorsement, Larcom was awarded the contract. In return for being awarded the job, Parnell requested that Larcom give Parnell a dual unit HVAC system, a generator, and $15,000 cash. The dual unit HVAC system and generator went to Parnell’s house. The $15,000 was given to Parnell in a coffee cup the same way that the earlier $5,000 kickback was given to him.

Larcom agreed and conspired with Parnell to give Parnell cash and other items of value, specifically HVAC units and generators, so that Parnell would continue to award Larcom and Larcom’s company with contracts for the Fulton County Detention Center, which Parnell could influence because he was the Fulton County Jailer. Larcom’s invoices were paid by Fulton County. 

Larcom and Parnell both profited from their arrangement and neither the Fulton County Fiscal Court nor the citizens of Fulton County were ever made aware of the arrangement. In doing so, Larcom had the intent to defraud the citizens of Fulton County through the kickback scheme he entered into with Parnell.

Larcom was charged by grand jury indictment, with co-defendants Ricky D. Parnell, 59, of Hickman, Kentucky; Ronald D. Armstrong, 60, of Dresden, Tennessee; Jimmy Boyd, 56, of South Fulton, Tennessee; and Michael Homra, 79, of Fulton County, on November 15, 2016. Homra and Armstrong recently pleaded guilty to charges and are awaiting sentencing.

If convicted at trial, the defendants could be sentenced to no more than 20 years in prison per count, pay a $250,000 fine for each count, and be sentenced to serve a three-year period of supervised release.

This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation

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