GREAT FALLS — Lynn Bapp Tempel, the finance manager of a construction company, admitted in federal court in Great Falls on Friday to fraud in a scheme in which she falsified invoices to steal more than $519,000 from a client for the construction of a residence.
Acting U.S. Attorney Leif Johnson said in a news release that Tempel, 60 years old, pleaded guilty to wire fraud.
The government alleged in court documents that Tempel managed the finances of William Tempel Construction, which entered into a contract to build a residence for a client. Beginning in May 2013, subcontractors submitted invoices directly to William Tempel Construction. Tempel provided the client invoices in which she had fraudulently inflated the amount of payment required.
William Tempel Construction received approximately $4.41 million from the client for the construction of the residence. The investigation determined that Tempel falsified, altered and inflated about 153 subcontractor invoices.
From the offer of proof:
William Tempel Construction entered into a contract with Jane Doe to serve as the general contractor for the construction of a residence in Great Falls, Montana. Subcontractors who worked for, supplied materials, and supplied equipment for the construction of the residence submitted invoices directly to William Tempel Construction.
Ms. Tempel did not provide Jane Doe with the original invoices. Instead, Ms. Tempel provided William Tempel Construction invoices to Jane Doe for payment, which fraudulently inflated the amount of payment required by Jane Doe to William Tempel Construction.
William Tempel Construction received approximately $4.41 million from Jane Doe for the construction of the residence. The investigation ultimately uncovered that Ms. Tempel falsified, altered, and inflated approximately 153 subcontractor invoices.
On October 8, 2015, as identified in count I of the indictment, Ms. Tempel obtained a check from Jane Doe for a total of $90,591.00. Ms. Tempel fraudulently inflated the amount by $9,338.56, which neither Ms. Tempel nor William Tempel Construction were entitled to receive. Ms. Tempel then deposited check #1161, which created an interstate wire communication that travelled from Montana, through Minneapolis, and back to Montana.
Tempel faces up to 20 years in prison, a $250,000 fine, and three years of supervised release. A plea agreement filed in the case calls for Tempel to be responsible for complete restitution, which is estimated at $519,524.
Chief U.S. District Judge Brian Morris presided and set sentencing for February 17, 2022. Tempel was released pending further proceedings.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI and the Great Falls Police Department.
