Reams get 18 months for his part in fraud conspiracy

Former Laurel County Emergency Management Director was facing up to five years in federal prison for his part in a conspiracy to defraud the U.S. government of more than  $240,000 in grant money destined to purchase equipment need in the event of a disaster at the Bluegrass Army Depot.

After crediting Reams for taking responsibility for his part through his guilty plea and listening to him as he stood in court and a admitted his mistake, U.S. District Court Judge Gregory VanTatenhove sentenced Reams to 18 months in a federal prison and ordered him to pay restitution.

Reams is solely responsible for $26,029.06 while his wife and co-defendant, Melody Vess Reams, will pay the remaining $215,134.30 as ordered in her plea agreement.

According to an information filed by U.S. Attorney Kerry Harvey, Melody Reams was the sole owner of Providing Response and Emergency Preparedness when the company was awarded a grant contract to provide equipment such as decontamination tents, portable generators, hazardous material equipment and emergency response trailers to counties surrounding the Bluegrass Army Depot in Richmond.

Brian Reams, an agent of the Chemical Weapons Stockpile Emergency Preparedness Program, then ensured that Melody Reams’, then known as Melody J. Vess, company was awarded equipment contracts for which the company provided CSEPP counties with equipment of lesser value and quality than that called for in PREP’s winning bid.

"Melody Vess Reams and "B.R." worked together to identify, purchase and provide the sub-standard equipment to CSEPP member counties," Harvey stated.

According to the plea agreement, which was entered at the same time as the information, the one legitimate bid for the contract was for $378,260. However, Melody Reams deposited a check for $530,446.35 into the company’s account

Among the differences in the requirements for the equipment and the actual equipment noted the generators were rated at 3,000 kilowatts as opposed to the required 8,000 kilowatts.

In addition, CSEPP was billed for more than $52,000 worth of equipment that was supposedly purchased, including propane tanks, extension cords, gasoline cans, traffic cones and mounting equipment was never accounted for.

All totaled, the parties agreed that CSEPP lost $225,130.45 as a result of the fraud.