Feds: Abq. firm's lies netted millions

ALBUQUERQUE (KRQE) - An owner of an Albuquerque-based construction company and his son-in-law were indicted this week on charges they lied to the Department of Veteran Affairs about who owned and operated the business to get preference on federal contracts.

According to the 11-page indictment filed in federal court Wednesday, Max Tafoya, 62, and his son-in-law Tyler Cole, 39, registered Max R. Tafoya Construction as a Service-Disabled Veteran Owned Small Business.

That designation requires that at least 51 percent of the company be owned and operated by a service-disabled veteran and grants the company preference on VA contracts assigned to small businesses by federal law.

But the U.S. Attorney's Office says although Tafoya is a veteran, neither he nor Cole is a disabled veteran. Instead, the indictment claims Tafoya paid his step-brother, Florida resident and disabled veteran Andrew Castillo, $600 a week to use his name.

"Every time the government sets up a program to help certain individuals who are deserving, it opens up an opportunity for other people who are willing to commit fraud to take advantage of those programs," said Steve Yarbrough, Firstst Assistant U.S. Attorney for New Mexico. "The people that should be receiving those benefits are those who sacrificed for our country and who have been disabled as part of their service."

The U.S. Attorney's Office says because of the false designation Max R. Tafoya Construction received five contracts for $11 million worth of work on four national cemeteries in Colorado, Texas, Missouri and New Mexico.

Both Cole and Tafoya face nine federal charges including:  

• Four counts of major fraud against the United States,
• Four counts of false statements
• One count of conspiracy.

If convicted of all charges, they could face a maximum of 65 years in federal prison and more than $5 million in fines.

Castillo has not been charged, but Yarbrough says he is not necessarily off the hook.

Tafoya's attorney, John Polk, told KRQE News 13 in a phone interview his client was unavailable for comment.

Neither Tafoya nor Cole has been arraigned or entered pleas to the charges.