Kentucky Businessman Sentenced for Multi-Million Dollar Fraud Scheme Targeting Boone County Schools
BOONE COUNTY, WEST VIRGINIA — A Kentucky businessman has been sentenced for his role in a years-long scheme to defraud the Boone County Schools system of more than $3.4 million through fake invoices and overbilling during the COVID-19 pandemic.
According to a statement from the U.S. Department of Justice, 65-year-old Jesse Marks of Rush, Kentucky, was sentenced Thursday to five years of federal probation, including 18 months of home detention, and ordered to pay $3,448,571.85 in restitution for conspiracy to commit mail fraud.
Fraudulent Overbilling Scheme During Pandemic
Court documents show that the scheme began around March 2020, when Marks, owner of Rush Enterprises, partnered with 48-year-old Michael David Barker of Foster, West Virginia, who was then the maintenance director for Boone County Schools.
The two conspired to inflate invoices for pandemic-related supplies such as masks, sanitizer, and cleaning materials that were never delivered.
Marks admitted to submitting fraudulent invoices to Boone County Schools from March 2020 through December 2023, resulting in millions of dollars in overpayments. The Board of Education relied on these falsified records and mailed checks to Rush Enterprises using the U.S. Postal Service, unaware of the deception.
Investigators later discovered that approximately 80 percent of the payments received were for products that never arrived.
Kickbacks and Cash Deliveries
According to the DOJ, Marks confessed that he shared the profits of the fraudulent scheme with Barker — often delivering cash in manila envelopes after depositing Boone County Schools’ checks into Rush Enterprises’ accounts.
At least half of the $3.4 million in stolen funds went directly to Barker, authorities said.
Barker had previously pleaded guilty in April 2025 and was sentenced earlier this week to two years and nine months in federal prison, followed by three years of supervised release. He was also ordered to pay the same $3.4 million restitution.
Federal Authorities Condemn the Scheme
U.S. Attorney Moore Capito called the scheme a betrayal of public trust, particularly during a national emergency when schools were struggling to keep students safe.
“They stole hope from the children of Boone County and did so at the expense of taxpayers throughout West Virginia and our country,” Capito said. “This is no longer a negotiable vice in West Virginia – it is a crime we will prosecute without mercy.”
The investigation involved several agencies, including the FBI, U.S. Department of Education Office of Inspector General, IRS-Criminal Investigations, West Virginia State Police, and the WV State Auditor’s Public Integrity and Fraud Unit.
Accountability for Public School Fraud
Officials emphasized that the case underscores the government’s commitment to protecting taxpayer dollars intended for education and public health.
Marks’ sentence marks a major step in restoring integrity to the Boone County Schools system, which suffered significant losses due to the overbilling scheme.
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