Midlothian man pleads guilty to multi-million dollar fraud and tax evasion scheme
Midlothian, Virginia – Adam Lamar Harrell, a 41-year-old Midlothian resident, has pleaded guilty to charges of mail fraud, federal program theft, and tax evasion. This comes after revelations of a fraudulent scheme to divert millions of dollars from the Virginia Department of Health (VDH). The plea was entered in a Virginia federal court, marking a significant conclusion to an extensive investigation by various federal and state agencies.
Embezzlement at the Heart of Public Service
Harrell, who escalated to the position of Associate Director at the Office of Emergency Medical Services (OEMS) within VDH in September 2019, abused his role to orchestrate a complex fraud. Tasked with overseeing critical aspects of Virginia’s emergency response programs and technology systems, Harrell directed substantial OEMS funds to a company he clandestinely owned—Strategic Tech Innovations, LLC. By concealing his association with this company, Harrell was able to funnel $4,337,395 into his personal accounts.
This misuse of funds was facilitated through the creation of 15 fraudulent invoices from January 2021 through May 2023. The invoices detailed services and technology supplies that were never intended to be delivered by Strategic Tech. To avoid detection, these invoices were processed through the Western Virginia EMS Council (WVEMS), bypassing the regular scrutiny from VDH and OEMS’s Accounts Payable department. Harrell exploited his authority to approve the payments unilaterally, compounding the deception.
Lavish Lifestyle Funded by Fraud
The proceeds from this elaborate scheme were spent on Harrell’s luxurious lifestyle, including the acquisition of real estate, high-end vehicles, firearms, and jewelry. The total amount embezzled provided Harrell with an opulent living far removed from his legitimate earnings.
Tax Evasion Compounds the Crime
Further complicating his legal woes, Harrell engaged in significant tax evasion. In 2021, he underreported his income and overstated expenses related to Strategic Tech on his federal tax returns. This manipulation not only reduced his taxable income but also unjustly garnered him a tax refund. From 2020 through 2023, Harrell failed to report any income from his fraudulent activities, evading taxes totaling $1,880,287.34.
Legal Repercussions and Community Betrayal
Scheduled for sentencing on November 20, Harrell faces up to 20 years in prison, although actual sentencing may differ based on federal guidelines and judicial discretion. His actions have betrayed the trust placed in him by the community and the state, undermining the integrity of critical public health and emergency services.
The case has been vigorously pursued by the U.S. Attorney’s Office for the Eastern District of Virginia, with Jessica D. Aber spearheading the legal proceedings. Significant investigative support was provided by the FBI’s Richmond Field Office, the IRS Criminal Investigation’s Washington D.C. Field Office, the Virginia State Police, and the Office of the State Inspector General.
As this case draws to a close, it serves as a stark reminder of the vigilance required to protect public resources from those who seek to exploit their positions for personal gain. The community and the victims of this scheme now await justice in the upcoming sentencing.
