Finance
West Virginia Businessman Sentenced for Defrauding Federal Broadband Grant Program
2025-03-12

A business owner from Monongalia County, West Virginia, has faced legal consequences for misusing federal grant funds intended to enhance rural broadband infrastructure. Timothy Chad Henson, a 35-year-old resident of Morgantown and proprietor of an internet service provider, was sentenced to prison following his conviction on charges related to financial misconduct. The sentence includes a term of incarceration as well as supervised release upon completion of his jail time. Additionally, Henson must repay a substantial sum as restitution.

In this case, Henson applied for federal grants aimed at expanding broadband access in underserved regions. The United States Department of Agriculture awarded Clearfiber Inc., the company he owned, nearly two million dollars to support such initiatives. However, it was alleged that Henson submitted fabricated invoices to obtain over $340,000, diverting much of this money into personal accounts rather than using it for its intended purpose. This misuse of funds came under scrutiny by federal authorities, leading to legal action against him.

The U.S. Attorney’s Office for the Northern District of West Virginia provided details regarding the sentencing. Henson will serve an 18-month prison term, followed by three years of supervised release. Furthermore, he is required to make significant monetary reparations amounting to $1.4 million. This outcome underscores the seriousness with which government agencies treat instances of fraud involving public resources allocated for critical infrastructure projects.

This case highlights the importance of accountability in the use of public funds designated for vital community development programs. It also serves as a reminder of the stringent measures taken by federal authorities to ensure that these resources are used appropriately and reach their intended beneficiaries. The repercussions faced by Henson demonstrate the potential consequences for those who attempt to exploit such programs for personal gain.

more stories
See more