Commonwealth’s Attorney Steve Descano announced today that Thomas Burns Sr., CEO of government contractor SP Global, Inc, will have to pay over $1 million in restitution.
According to the Commonwealth’s Attorney’s Office, Burns pleaded guilty to three felonies: two counts of wage theft of more than $10,000 and one count of conspiracy to commit wage theft. Burns was also sentenced to four years of incarceration with one suspended — technically four years for each charge, but sentences running concurrently.
According to the release from the Commonwealth’s Attorney’s Office:
Burns, 75, was the CEO of SP Global, Inc (SPG), a government contractor working on technology implementation based in Chantilly, VA. Beginning in October 2020, SPG stopped paying their 40+ employees, including managers and highly skilled tech workers. For months, Burns and other executives repeatedly promised employees that payment was forthcoming, including backpay and additional bonuses. Burns offered shifting explanations as to why employees were not being paid, including issues with international banking regulations and travel restrictions from the pandemic, while assuring employees that funds from a new investor were “guaranteed and imminent.” Victims worked without pay for months, consoled by the promises made by executives, but eventually quit without ever being compensated for their work.
The release said SP Global defrauded 42 victims of $5 million in wages.
“Eight of those victims chose to be included in the restitution agreement totaling $1,070,429.21,” the release said, “the other 34 victims elected to proceed with a civil suit, which is pending.”
Last year, Burns also pleaded guilty to theft of government property after diverting over $12 million from an Air Force contract to pay for unrelated personal and business expenses.
“Executives should not be able to get away with taking the money that you earned putting in an honest day’s work,” said Descano. “Stealing is stealing, and financial crimes can be just as devastating for victims’ families — those who don’t get paid can miss rent or mortgage payments, putting their safety and security at risk.”
