Kathleen McGrade and her husband, Brian Collinsworth, have pleaded not guilty in this alleged $60 million scheme.
A federal investigation of former State Department contracting specialist Kathleen McGrade has uncovered a treasure trove of luxuries allegedly acquired with the proceeds of a multimillion-dollar contracting scam: a Steinway piano; sculptures; sapphire, emerald and diamond jewelry; and a 41-foot yacht bearing the name of the company she and her husband formed, Sterling Royale.
As prosecutors see it, McGrade, 64, steered heating, ventilation and air conditioning work at embassies around the world to the Sterling Royale Group (SRG), all while keeping her relationship with her husband secret from co-workers.
An October trial is scheduled on the felony charges that include wire fraud and conspiracy. If convicted, prison time could be in their future.
