DEPUTY PONZI

Former Dodge County deputy pleads guilty to fraud that led to nearly an $11M loss

 

By Lori Pilger

 

Lincoln Journal Star

February 9, 2021 

 

A former Dodge County deputy sheriff pleaded guilty Monday in a wire fraud case that cost his six victims and a bank nearly $11 million, federal prosecutors say.

Craig Harbaugh could get up to 20 years in federal prison and up to a $250,000 fine at his sentencing in May. 

U.S. Attorney Joe Kelly said Harbaugh admitted falsifying purchase orders and contracts for his privately owned business “Tactical Solutions Gear,” a federal firearms licensee with a former location in Fremont.

Harbaugh used the false purchase orders and contracts to convince people in the community to invest in his firearms business with the expectation that they would receive a return when Harbaugh filled the purchase orders.

He also used the falsified documents to obtain lending from a federally insured bank.

"In fact, Harbaugh did not have any standing or open purchase orders or contracts with any of the companies or government entities that he falsely claimed to be doing business when he induced the victims to invest with him," Kelly said in a news release.

Harbaugh falsely claimed he had contracts and purchase orders to sell firearms and tactical gear to the Nebraska State Patrol, the Illinois State Police, the Kansas Department of Wildlife, the Kansas City Police Department, Werner Enterprises, other law enforcement agencies and one defense contractor.

It ultimately led to a combined loss of $10,979,214. Six investors lost more than $6 million, and a bank lost the rest.

Kelly said Harbaugh essentially ran a Ponzi scheme. In an email obtained by the FBI, Harbaugh said he was “irresponsible, immoral, criminal, and selfish” for deceiving the bank.

He was a Dodge County deputy sheriff the entire time he ran the scheme.

“Craig Harbaugh exploited his position as a sheriff’s deputy to take advantage of victims who invested their life savings with him. Today’s plea demonstrates that no one is above the law," said FBI Omaha Special Agent in Charge Eugene Kowel. "The FBI and our law enforcement partners will continue to ensure those who commit fraud are brought to justice, even if they wear a badge." 

The case was investigated by the FBI.