Consultant Indicted for Role in Kickback Scheme : Courts: Laguna Niguel man faces 24 felony counts of inflating bills on three government contracts.

A Laguna Niguel construction consultant was charged Friday with masterminding a kickback scheme that defrauded the U.S. Small Business Administration of $175,000.

A federal grand jury in Los Angeles indicted John R. Sevier III, 41, on 24 felony counts for his role in the scheme, which involved inflated bills on three U.S. government contracts, said U.S. Atty. Lourdes G. Baird of the federal Central District Court in Los Angeles.

The government charged that Sevier arranged for a Temecula building firm, Paragon Pacific Contractors Inc., to be awarded the contracts in return for the firm overbilling the government and using the excess funds to pay off many of Sevier’s creditors.

Neither Sevier nor officials at Paragon could be reached for comment Friday.

The kickback scheme started in 1990, when Southern Specialty Co., a Nevada construction company, failed to complete three of 11 projects it had been awarded by the U.S. Navy and Air Force.

Amwest Surety Insurance Co., a Woodland Hills surety bond company for the projects, retained Forcon International Inc., an Irvine construction consultant, to search for a new subcontractor to finish the three jobs: an optical calibration laboratory, a small test facility and an engine preparation and storage building.

Forcon, in turn, hired Sevier to conduct the search.

The indictment alleged that Sevier instructed Paragon to inflate its invoices and to request payment far in excess of its legitimate cost of $171,804.60. Paragon billed Amwest $347,410.50 for completing the jobs.

Paragon, according to the indictment, used the $175,605.90 difference to pay Sevier’s personal creditors as a fee to him for awarding Paragon the contract.

The indictment said Sevier’s creditors were not aware of the scheme.

Assistant U.S. Atty. Nathan J. Hochman said there has been no decision yet on whether to take action against Paragon and its officials.

There is no evidence that Am-west or Forcon were involved in the scheme, he said.