Indiana Man Sentenced to 2 Years for Running Federal Consulting Business Under Assumed Identity While Debarred: About $440,000 Obtained

A federal court in South Bend, Indiana, has sentenced Stephen A. Schemenauer, 46, of South Bend, to 24 months in prison after he pleaded guilty to concealing a material fact, U.S. Attorney Adam L. Mildred for the Northern District of Indiana announced. U.S. District Court Judge Cristal C. Brisco also imposed one year of supervised release and a $225,000 fine.
According to documents in the case, Schemenauer offered consulting services to businesses with contracts with the General Services Administration (GSA). After he submitted a falsified document to the GSA, his consulting service was debarred from February 2022 through February 2025, barring him from doing business with the federal government. Despite the debarment, he soon opened a new business under a different name and continued his consulting services with the GSA, concealing his true identity by submitting emails and documents signed in someone else's name. Over three years he fraudulently obtained approximately $440,000 from clients, admitting he willfully concealed his identity because the GSA would not have approved his continued services had it known who was behind the communications.
U.S. Attorney Adam L. Mildred said federal debarment is a severe legal barrier to protect taxpayer dollars, not an administrative hurdle to be outmaneuvered through deceit, and that the sentence sends a clear message to anyone contemplating white-collar crime. GSA Acting Inspector General Robert C. Erickson said the suspension and debarment process helps prevent agencies from doing business with irresponsible and dishonest contractors, and that his office will continue to investigate those who use false information to bypass government safeguards.
The GSA Office of Inspector General investigated the case, and Assistant U.S. Attorney Luke N. Reilander prosecuted it. (Source: U.S. Department of Justice)
Source: U.S. Department of Justice
Published by GSM · USA (original Chinese edition)
Photo: 图:美国总务管理局(GSA)总部大楼,本案由 GSA 督察长办公室主查。APK 摄,CC BY 4.0,经 Wikimedia Commons。 / Photo: U.S. General Services Administration headquarters; the case was investigated by the GSA Office of Inspector General. By APK, CC BY 4.0, via Wikimedia Commons.

