2 accused of conspiring to defraud TVA with Rutherford Co. Schools software installation

NASHVILLE, Tenn. (WZTV) — Two California software company executives are charged with conspiracy to defraud the Tennessee Valley Authority (TVA) of more than $300,000 linked to software installation with Rutherford County Schools,Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee announced Monday.

The seven-count indictment unsealed Friday charges AnthonyGigliotti, 74, the CEO of Autonomic Software, Inc., (Autonomic) withconspiracy to commit wire fraud, three counts of mail fraud, and three counts of wire fraud, andAlexander Gigliotti, 36, the Vice President of Autonomic, withconspiracy to commit wire fraud.

Autonomic, a software company out of Danville, California, provided a variety of software to private and public sector organizations. Back in 2016, the company installed power management software in the Rutherford County School System. According to the indictment, the installation was connected to the TVA's EnergyRight program, an incentive-based program designed to save energy and reduce costs through an energy-saving software. To be eligible for the program, it's reportedly required to pay part of the software materials cost.

The indictment says Autonomic told Rutherford County Schools they would not incur any costs associated with the installation, but afterwards submitted 47 invoices, totaling $588,240, to the contract administrator. Per court documents, the software ended up failing to function as initially represented, leaving Rutherford County Schools to buy different energy saving software with a lower cost.

U.S. Marshals in California arrested both Anthony and AlexanderGigliotti on Friday. They are expected to appear in court in Middle Tennessee at a later date. If convicted, they face up to 20 years in prison.