‘David vs. Goliath’: Three indicted in connection to Swadley’s contract scandal
OKLAHOMA CITY (KFOR) – Three people have been indicted for conspiracy to defraud the state in connection to Swadley’s Bar-B-Q contract with the Oklahoma Tourism and Recreation Department.
According to the Oklahoma Attorney General’s Office, Ronald Swadley, Curtis Breuklander and Timothy Hooper have been charged with one felony count of conspiracy to defraud the state and five felony counts of presenting false or fraudulent claims against the state.
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“The indictments issued today contain serious charges and will be prosecuted by my office on behalf of the People of Oklahoma,” said Attorney General Gentner Drummond.
The indictments come after the restaurant’s attorney filed a motion on Monday against the Oklahoma Department of Tourism.
The summary judgment filing claims that the evidence proves the state owes Swadley’s money on four key points:
Tourism actually owes Swadley’s FBK approximately $1,176,541.00 in billed and unpaid invoices, plus $1,200,000.00 in unpaid, contractually required “operational loss” reimbursement;
As a result of Tourism’s improper cancelation of the agreements, Swadley’s FBK is entitled to early contractual cancelation penalties of approximately $163,123.00;
Tourism owes Swadley’s FBK $53,182.86 for catering services delivered and food consumed without any complaint; and
Swadley’s FBK delivered to Tourism a net contributory value of $11,836,083 more than what Tourism has paid to Swadley’s FBK.
Officials allege that Swadley’s Foggy Bottom Kitchen provided false invoices to the Tourism Department to pay public funds and that the company told an equipment supplier to create fake invoices with larger amounts for equipment.
The indictment says two different sets of invoices were kept by Swadley’s Foggy Bottom Kitchen. One set contained the initial invoices received and paid and the other had false invoices billed to the Tourism Department. It’s alleged that the conspiracy to defraud the state started in October of 2019 until the contract was canceled in 2022.
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In January of 2023, A.G. Drummond announced that his office would work alongside the Oklahoma State Bureau of Investigation to look into Swadley’s contract. The company entered a contract with the Tourism Department in March of 2020 to offer restaurants at five state parks. Two additional parks were added to the contract in 2021, one park was later removed.
The contract between Swadley’s and the state was canceled in April of 2022 after accusations of fraudulent activity. Shortly after, a separate case began when Tourism and Recreation Director Jerry Winchester stepped down and the state filed a civil suit against Swadley’s for breach of contract.
The Legislative Office of Fiscal Transparency was raising eyebrows about a four-month investigation into significant expenditure growth by the Oklahoma Tourism and Recreation Department in April 2022.
The report focused on lawmaker concerns regarding a contract with Swadley’s Bar-B-Q restaurants.
Officials previously said the Oklahoma Tourism and Recreation Department had paid $13 million to Swadley’s Bar-B-Q restaurants to renovate and run the Foggy Bottom Kitchens in certain Oklahoma state parks.
Those payments included $2.1 million to cover operating losses in 2021. The then-contract required the state to pay up to $1.2 million for annual operating losses.
More information regarding the indictments can be found here.
“We absolutely deny any wrongdoing. We will rely on 12 people to make the right decision. Swadley’s stepped up to the plate for Oklahoma when no one else in the state would.”
Mack Martin, Attorney for Brent Swadley
“This is sadly a legal dispute that keeps escalating. The question remains why the State will not answer the 12 questions we submitted to them. Please remember, there are always two sides to every story – especially a story as politicized as this. As the Attorney General’s Office stated: “Every individual indicted is presumed innocent unless and until convicted in a court of law.” We hope someday all the political endgames will cease in this devastating ordeal to my family and business.
We sincerely ask for your prayers in this David vs Goliath battle and thank you for continuing to show your support.”
Swadley family statement
News 4 reached out to the Oklahoma State Tourism and Recreation Department for a statement, but it referred us back to the Attorney General’s Office.
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