SALT LAKE CITY — A former BYU football player has been convicted of taking away contracts that were supposed to go to businesses owned by disabled veterans — resulting in more than $16 million in payments from the government.
Stanley Raass, 44, of Lehi, pleaded guilty on Tuesday to wire fraud and money laundering. Sentencing was scheduled for May 23. Raass is expected to receive two years in federal prison and be ordered to pay $640,000.
Raass owned a construction company called Raass Brothers Inc. The company provided general construction for the federal government, according to charging documents.
In 2009, investigators say he formed another company called RWT, named after his father-in-law's initials. Raass' father-in-law is a veteran with a 100 percent disability rating from the Department of Veterans Affairs. He was listed as the president and majority owner of RWT. But prosecutors say the father-in-law was physically incapable of managing RWT.
To meet the requirements for these particular contracts, a service-disabled veteran must own 51 percent of the business and must manage the daily operations of the business, according to the charges.
The felony information filed against Raass, who never served in the miliary, says Raass controlled the managerial and daily business operations of RWT.
"Between Sept. 19, 2009, and Aug. 26, 2013, Raass, through RWT, obtained 11 contracts set aside for service-disabled veteran-owned small businesses totaling $16,517,912 in payments from the government," according to a statement from U.S. Attorney for Utah John Huber's office.
"Service-disabled veterans are recognized for their sacrifices and are afforded some special consideration when conducting business with the U.S. government," said Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service in a prepared statement. "The resolution of this case shows that those who fraudulently claim affiliation with service disabled veterans for their personal gain undermine the program."15 comments on this story
"Stanley Raass created an elaborate scheme with no purpose other than defrauding the government and other disabled veterans for his own personal gain," added Special Agent in Charge Tara Sullivan of the Las Vegas field office.
Raass also used to be an assistant football coach at Pleasant Grove High School and a linebacker for BYU. He quit his volunteer job at the high school following his arrest in 2015 for investigation of domestic violence. He later took a plea in abeyance in Lehi Justice Court, pleading guilty to misdemeanor assault.
Raass was with the BYU football team from 1994-95.