NEWS RELEASE
FROM:	RAYMOND W. GRUENDER United States Attorney Eastern District of Missouri 325 Broadway Cape Girardeau, MO 63701 (573) 334-3736
For Futher Information Call: Assistant U. S. Attorney Michael A. Price

September 17, 2001: United States Attorney Raymond W. Gruender announced today that a Poplar Bluff man has been indicted by a federal grand jury on twelve felony charges, consisting of obtaining illegal kickbacks, mail fraud, false statements, abuse of set-aside program and major contract fraud against the United States.

MICHAEL F. PERSONS, age 45, of Poplar Bluff, Missouri, appeared before the Honorable Lewis M. Blanton, United States Magistrate Judge, on Friday, September 14, 2001 for arraignment on all twelve counts of the Indictment.

KAJACS CONTRACTORS, INC., a Missouri corporation, which is owned by Persons, was also indicted on four counts of major fraud against the United States.

If found guilty on all counts, Persons faces a maximum punishment of 10 years in prison and/or a $1,000,000 fine. The corporation, KAJACS Contractors, Inc., also faces the possibility of a $1,000,000 fine.

United States Magistrate Blanton set a hearing for any pretrial motions on Friday, October 12, 2001 and scheduled the case for jury trial before United States District Judge E. Richard Webber at the Federal Courthouse in Cape Girardeau on November 26, 2001. Persons was released on a $10,000 secured bond.

According to the indictment, in March of 1996, Persons is alleged to have used intimidation or threats against two employees of KAJACS Contractors, Inc. in order to obtain part of their compensation during a Government construction project.

The Indictment further charges that in September and October of 1996 Michael F. Persons as the President and primary owner of KAJACS Contractors, Inc. obtained money from various insurance companies providing coverage to or on behalf of Persons and KAJACS, by means of fraudulent pretenses and false representations. The Indictment alleges that on three separate occasions, Persons used the United States mail for the purpose of executing his scheme to defraud the insurance companies.

Finally, the Indictment alleges that Persons submitted false statements and fraudulent documents to the Small Business Administration in a scheme to obtain special considerations during the procurement process of contract awards with the United States. The Indictment charges that Persons fraudulently claimed both social disadvantage as a Native American and KAJACS� economic disadvantage as a Cherokee owned company.

The Indictment further alleges that due to Persons� false and fraudulent representations, KAJACS obtained SBA 8(a) status as a small disadvantaged business company; the result of which was numerous set-aside contracts or contract bidding privileges with U.S. government agencies.

The Indictment charges that KAJACS Contractors, Inc. was awarded contracts in excess of a million dollars with the United States Army Corps of Engineers, the United States Department of Defense/United States Air Force, and the United States Department of Transportation/Federal Highway Administration, all as a result of KAJACS Contractors, Inc.�s special status through the Small Business Administration, allegedly obtained by Persons� false and fraudulent representations.

The case was investigated by Special Agent Sean Kilcoyne with the U.S. Department of Labor. Special Agent Tom Blades, FBI, also assisted. Assistant U. S. Attorney Michael A. Price is handling the case for the United States.

The charges set forth in an indictment are merely accusations and each defendant is presumed innocent until and unless proven guilty.