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Marshall, Stover plea agreement in place

STEUBENVILLE — The two city residents who entered guilty pleas last week to a single charge of complicity to commit wire fraud against the federal government may face six months of house arrest with a work-release provision, three years probation and a $250,000 forfeiture.

Michael J. Marshall and Brandt Stover entered guilty pleas last week before U.S. Magistrate James E. Seibert, who ordered a pre-sentence investigation. The deal still must be approved by the federal court.

Under the terms of the agreement reached between the U. S. Attorney’s Office in Wheeling and defense attorney William E. Lawler III, Marshall will be required to forfeit his wife’s pension plan established by the N-Powell Co. and will receive credit toward the $250,000 financial judgment.

A similar plea agreement is in place between the U.S. Attorney’s Office and defense attorney Kwame Manley of the Paul Hastings Law Group of Washington, D.C., who represents Stover.

According to Lawler, who practices with the Vinson and Elkins Law Practice of Washington, D.C., the federal government is not pursuing forfeiture of several bank accounts at Huntington National Bank, PNC Bank, WesBanco Bank and the Strip Steel Federal Credit Union or several pieces of construction equipment.

“The agreement reflects that there was no loss to the government. The work done under these contracts was completed and done well,” Lawler and Manley said in a joint statement to the Herald-Star.

Marshall, Stover, Stephen M. Powell of Steubenville, who died in December 2015, and Powell’s sister, Nichole P. Northcraft of New Cumberland, were named in a multi-count federal indictment in June 2015.

The Northcraft case is pending.

According to the plea agreement, “the United States will advise the court of the defendant’s forthrightness and truthfulness, or failure to be forthright and truthful, and ask the court to give the same such weight as the court deems appropriate. At the time of sentencing the government will dismiss the remaining counts.”

A press release issued Thursday by the U.S. Attorney’s Office of the Northern District of West Virginia said Marshall and Stover admitted to being involved in a scheme to defraud the government in which they violated regulations to enter into and remain in programs for disadvantaged individuals and disabled veterans.

They were awarded contracts through the programs worth more than $140 million from February 2003 through October 2014.

The Small Business Administration operates programs to assist socially or economically disadvantaged business operators, and the Department of Veterans Affairs assists disabled veterans in competing for government contracts. The businesses must be unconditionally owned and controlled by the qualifying individuals in order to comply with federal law, the press release reads.

Assistant U.S. Attorneys Robert H. McWilliams Jr. and Andrew Cogar prosecuted the cases. The Small Business Administration Office of Inspector General, the Defense Criminal Investigative Service, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General and the Federal Bureau of Investigation investigated.

Marshall is the former Steubenville finance director. None of the charges were related to his former job.

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