Performance Bond Fraud Leads to Prison and Restitution
A Fresno man was sentenced to more than five years in federal prison after orchestrating a long-running scheme that defrauded government agencies and private contractors out of $1.25 million through fake bonding services. By submitting fraudulent payment and performance bonds backed by nonexistent or misrepresented collateral, forged notary stamps, and false documents, he misled contractors seeking federal work and compromised public infrastructure protections. The case reinforces a critical lesson in the surety and performance bond industry: attempting to cut corners or fabricate bond documents carries severe criminal consequences. Contractors are far better served by obtaining legitimate bonds through reputable surety providers, which protects both their businesses and the public while avoiding costly legal exposure.
Updated: February 2026
By Gary Swiftbonds, nationally recognized expert in surety bonds, bid bonds, and performance bonds.
Below is a great article on another case of fraud. We have obviously gone over this before, but we’ll say it again – Fraud is not the best course of action. In the performance bond world, it’s best to just go and get a good bond – and not fake the bond documents.
See more at our Tumblr page.
https://www.fresnobee.com/news/local/crime/article29921785.html
Fresno man sentenced to more than five years for fraud | Fresno Bee.
A Fresno man was sentenced to five years and five months in prison for defrauding the federal government and private companies out of $1.25 million, the U.S. Attorney’s Office announced Monday.
Abel Martin Carreon, 57, ran a scheme to defraud the private companies that were seeking contract work with the federal government from April 2005 to May 2011.
He was ordered to pay $1.25 million in restitution.
His company, Tripartite Escrow Corp., offered bonding services to prospective government contractors using fake collateral to secure bonds.
Bond packages that Carreon submitted contained false statements and fraudulent documents, according to his plea agreement.
Carreon pledged stock that didn’t exist as collateral, was worth substantially less than represented or was pledged across multiple bonds without full disclosure, the U.S. Attorney’s Office said. He used forged notary stamps and notary signatures and other forged signatures on the bond documents.
The contractors and the government paid Carreon for false and fraudulent payment and performance bonds.
“Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law,” said William Swallow, regional special agent-in-charge for the Department of Transportation Office of Inspector General.
Frequently Asked Questions
What is performance bond fraud?
Performance bond fraud occurs when an individual or company submits falsified, forged, or misleading bond documents to obtain contract approval or payment. This can include fake collateral, forged signatures, false underwriting statements, or bonds issued without a licensed surety backing them.
Why is using a fake bond such a serious offense?
Fake bonds expose project owners, taxpayers, and contractors to significant financial risk. Because performance bonds guarantee contract completion, fraudulent bonds leave projects unprotected if something goes wrong. This is why bond fraud is prosecuted aggressively at both the federal and state levels.
What are the penalties for performance bond fraud?
Penalties can include federal prison sentences, criminal fines, restitution orders, permanent bans from government contracting, and civil liability. In this case, the offender received more than five years in prison and was ordered to repay over $1 million.
How can contractors verify that a bond is legitimate?
Contractors should verify bonds by confirming the surety company is licensed, checking the bond number directly with the surety, and working with reputable bond agencies. Legitimate bonds always come from authorized insurers and include verifiable documentation.
What is the safest alternative to using fraudulent bond documents?
The safest alternative is to obtain a legitimate bond through a licensed surety provider. Even contractors with credit challenges can often qualify for valid bonding programs. Using a real bond protects both the contractor and the project from legal and financial consequences.
When Shortcuts Cost Everything
This case is a stark reminder that fraud doesn’t just fail—it compounds. What may begin as a shortcut to win work or bypass bonding requirements can quickly unravel into criminal charges, massive financial loss, and permanent reputational damage. In the surety world, fabricated bonds and forged documents don’t merely violate rules; they undermine the trust that public projects and private contracts are built on.
The reality is that legitimate bonding options exist for nearly every situation, including contractors with challenging credit profiles or complex project requirements. Choosing a real surety bond backed by licensed underwriters may take more effort upfront, but it protects businesses, clients, and public funds from irreversible harm.
At its core, bonding is about accountability. It’s a safeguard—not an obstacle—and when handled correctly, it enables growth instead of destroying it. The difference between a business that survives and one that collapses often comes down to a single decision: doing it right, even when it’s harder.
Those who understand that truth don’t just stay out of trouble—they stay in business.