Chesterton Tribune

 

 

Valparaiso businessman sentenced to probation for defrauding Vermont utility

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A Valparaiso man who admitted defrauding a Vermont utility--twice--has been sentenced in federal court to probation after he pleaded guilty to charges of wire fraud and mail fraud, the U.S. Attorney’s Office for the Northern District of Indiana said.

On Monday, Kevin J. Babich, 38, was sentenced to 18 months’ probation, with eight of those months to be served on electronically monitored home detention.

Although each count to which Babich pleaded is also liable to a fine of up to $250,000, the judge imposed no fine because--as he put it in the sentencing order--Babich “is not able and, even with the use of a reasonable installment schedule, is not likely to become able to pay all or part of a fine recommended by the sentencing guidelines.”

Babich, in the plea agreement, specifically admitted to the following:

* He entered into a $680,000 contract with Vermont Transco (VELCO), under which Babich’s company, Utility Communications, was to perform work on VELCO’s communications tower. Then--because he was “having significant financial problems”--he used a portion of the $680,000 “to pay personal bills and other obligations that had nothing to do with the contract terms.”

* And, when VELCO “became impatient when the promised work” was not completed to its satisfaction and decided to hire a new company not affiliated with Utility Communications, Babich referred VELCO to Digicom of Portage, of which he was in fact sole owner but whose ownership he concealed from VELCO. A portion of the moneys which VELCO subsequently paid to Digicom--in the belief that Digicom was an “independent company”--Babich also used for his “personal benefit.”

 

Posted 2/25/2015

 
 

 

 

 

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