Timothy Chad Henson, the owner of Clearfiber, Inc., an internet service provider in Monongalia County, West Virginia, has been sentenced to 18 months in federal prison for money laundering. The sentencing was announced today.
Henson, 35, from Morgantown, West Virginia, had applied for funding from the United States Department of Agriculture (USDA) aimed at providing high-speed internet services in Monongalia and Marion Counties. This funding was part of the USDA’s Community Connect Program which grants funds to eligible applicants delivering broadband services to rural areas. Clearfiber, Inc. was awarded $1.96 million under this program.
Court documents revealed that Henson submitted false invoices to the USDA and obtained more than $340,000 fraudulently. He then transferred $322,900 into another bank account for personal use.
In addition to his prison sentence, Henson has been ordered to pay restitution amounting to $1,401,849.06 and will be subject to three years of supervised release following his incarceration.
The case was prosecuted by Assistant U.S. Attorney Eleanor Hurney on behalf of the government and investigated by the Internal Revenue Service-Criminal Investigations unit. Chief U.S. District Judge Thomas S. Kleeh presided over the proceedings.