Guy Potter, 67, of Versailles, Kentucky, formerly of Bensenville, and Matthew Giovenco, 43, of Grayslake, were sentenced today after being convicted earlier this year. Both were found guilty of fraudulently running a sham minority-owned cable television installation business that obtained $8.3 million in subcontracts from a cable company that serves residents on the city’s north side.
Potter was sentenced to four-and-a-half years beginning on October 31, and Giovenco, 43, of Grayslake, was sentenced to three years in prison beginning on December 2. U.S. District Judge Pallmeyer, also ordered both defendants to forfeit $2.2 million in profits and to pay $217,580 in restitution to RCN.
According to the trial evidence and court records, Potter and Giovenco, neither a minority, worked with Jerone Brown of Chicago and his mother Cherone Mayes, of Chicago. Brown acted as the minority owner and president of ICS, a sham minority business; his mother paid a $500 bribe to a city employee to expedite the minority-owned business (MBE) certification for ICS. All defendants supported the false representations to RCN with an MBE certification for ICS that they obtained by making false representations to the city regarding Brown’s purported ownership and control of ICS, when, in fact, Potter and Giovenco alone controlled ICS and made most, if not all, financial and managerial decisions for the business. Brown and Mayes, both testified as government witnesses after pleading guilty and both are awaiting sentencing.