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Federal prosecutors have revealed more about what they say was a “simple” scheme used by a Southwest Florida couple to steal nearly $5 million from Lee County taxpayers. Robert and Kay Gow and another defendant are facing multiple counts of fraud and money laundering in a trial that begins next month. They are accused of taking economic development funds awarded to VR Laboratories to produce a vitamin health drink and create 208 jobs.
In a court filing this week, prosecutors said “the fraud itself was simple,” and involved hiring a friend to create a bottling line for the drink, then overcharging for the equipment bought from a legitimate supplier by claiming the mark-up was used to create special proprietary software to make putting liquid in a bottle more efficient.
Government lawyers say the software appears to have existed only in the mind of the son of co-defendant John G. Williams Jr.
More: VR Labs took $250K in investments from Fort Myers charity trusts