Fulton Co. KY contract supplier pleads guilty to concealing costs from citizens

Fulton Co. KY contract supplier pleads guilty to concealing costs from citizens

FULTON COUNTY, KY (KFVS) - A business owner and contract supplier of Union City, Tn pled guilty on for a conspiracy to defraud Fulton Co., Ky citizens, through kickbacks and concealment of costs.

United States Attorney John E. Kuhn, Jr says this conspiracy is associated with work performed on the 2015 Fulton County Detention Center expansion.

In the United States District Court before Senior U.S. District Judge Thomas B. Russell, Daniel C. Larcom, 42, pled guilty to honest services wire fraud and wire fraud in a conspiracy that allegedly involved then Fulton County Jailer Ricky D. Parnell and others.

Larcom owns Danny Larcom Heating & Air, Inc., which was awarded a $415,000 contract to install HVAC systems as part of the $3.3 million expansion of the Fulton County Detention Center.

In 2011 Larcom was promised additional contracts involving the jail after installing a new $4,800 heating and air unit at Parnell's home.

Parnell contracted Larcom to replace HVAC equipment in the jail with new equipment around 2012 or 2013.

While Larcom estimated the cost at $90,000 for the new units. Parnell advised Larcom to make the contract for $100,000 and to add expensive thermostats to the building.

Parnell wanted $5,000 cash for awarding Larcom the contract which Larcom gave him months after the agreement by way of a coffee cup given to Parnell in his pick-up truck.

Larcom believed that Parnell would not give him future work if he did not pay the $5,000 kickback because , Parnell was the Fulton County Jailer and  Larcom's invoices were paid by Fulton County.

Later, Parnell asked Larcom to install the HVAC systems for the jail expansion project.

Larcom estimated the cost of the job at $380,000 to $400,000.  Parnell allegedly told Larcom to make a bid for $415,000 and with Parnell's endorsement, Larcom was given the contract.

In return for Parnell's endorsement, Parnell allegedly requested that Larcom give him a dual unit HVAC system, a generator for Parnell's home, and $15,000 cash.

Larcom agreed and conspired further with Parnell to give him cash, HVAC units and generators, so that Parnell would continue to award Larcom and Larcom's company with contracts for the Fulton County Detention Center.

Neither the Fulton County Fiscal Court nor the citizens of Fulton County were ever made aware of the arrangement.

Larcom had the intent to defraud the citizens of Fulton County through the scheme he entered into with Parnell.

Larcom, with co-defendants Ricky D. Parnell, 59, of Hickman, Ky; Ronald D. Armstrong, 60, of Dresden, Tn; Jimmy Boyd, 56, of South Fulton, Tn; and Michael Homra, 79, of Fulton County, Ky were charged with grand jury indictment on November 15, 2016.

Homra and Armstrong recently pleaded guilty to charges and are waiting to be sentenced.

If convicted, defendants could be sentenced to 20 years or less in prison per count, pay a $250,000 fine for each count, and be sentenced to serve a 3-year period of supervised release.

This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Kentucky Attorney General's Office and the Federal Bureau of Investigation (FBI).

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