Suburban men sent to prison for running fake minority-owned business
Two men with ties to the suburbs were sentenced to prison today for operating what federal prosecutors called a "sham minority-owned cable television installation business."
Guy Potter, 67, formerly of Bensenville, and Matthew Giovenco, 43, of Grayslake, were indicted in 2011 and convicted of mail fraud in April.
Potter received a 4˝-year sentence and Giovenco was sentenced to three years behind bars.
Two co-defendants testified against the men after pleading guilty to bribing a city of Chicago employee to expedite a minority-owned business certificate for them, prosecutors said.
Potter and Giovenco operated the cable installation company that was improperly subcontracted by RCN Telecom Services, which was required to subcontract 40 percent of its installation and disconnection services to minority-owned businesses for its operations on the north side of Chicago. The company received $8.3 million from RCN by falsely representing the co-defendants as owners of the cable installation company.
The sentencing also ordered the men to forfeit $2.2 million in profits and pay $217,580 in restitution.
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