Lexington couple pleads guilty in federal fraud case

A Lexington man pleaded guilty Wednesday to conspiracy to defraud the federal government in the taking of more than $200,000 in grants.

Jerome Hahn, 69, of Lexington, pleaded guilty in federal court after his company, Telehealth Holdings, received $222,037 in grants from the National Institutes of Health, according to the U.S. Attorney’s Office. The grants were intended to help with the development of medical devices.

Relatedly, Vesta Brue, 70, pleaded guilty in December to making a false claim against the federal government. She previously falsely certified that the funds had been spent in accordance with grant rules and regulations, according to the U.S. Attorney’s Office.

Brue will be sentenced March 30. She could face up to five years in prison and a maximum fine of $250,000, according to the U.S. Attorney’s Office.

Hahn will be sentenced March 18. He faces up to 10 years in prison with a maximum fine of $250,000.