Morgantown Business Owner Admits to Fraud of Federal Broadband Funding

CLARKSBURG, WEST VIRGINIA – Timothy Chad Henson, the owner of Clearfiber, Inc., an internet service provider in Monongalia County, has admitted to defrauding the United States Department of Agriculture (USDA).

Henson, 35, of Morgantown, West Virginia, pled guilty today to money laundering. According to court documents and statements made in court, the USDA’s Community Connect Program offered grants to eligible applicants providing broadband services to rural areas. As owner of Clearfiber, Henson applied and was awarded $1.96 million in USDA funding to offer high-speed internet services in Monongalia and Marion Counties. Henson then submitted false invoices to the USDA to receive more than $340,000, transferring $322,900 into another bank account for his personal use.

Henson faces up to 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorney Sarah Wagner is prosecuting the case on behalf of the government.

This case was investigated by the Internal Revenue Service-Criminal Investigations and the USDA Office of the Inspector General.  

U.S. Magistrate Judge Michael John Aloi presided.