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SAN ANTONIO (AP) A Department of Veterans Affairs contractor has been charged with fraud over a $2 million agreement for work at a Texas hospital.

A San Antonio newspaper reported that Navy veteran Jonathan Patrick Saunders faces six counts of wire fraud and two counts of aggravated identity theft.

Saunders appeared in federal court in San Antonio on Wednesday and was freed on $50,000 bail. He's president of Saunders MEP Inc.

This month's indictment involves qualifications for projects at a VA campus in Kerrville, about 60 miles northwest of San Antonio. Prosecutors say Saunders falsely said his company qualified as a service-disabled veteran-owned small business and used certain people's names without their permission.

His attorney says Saunders will waive arraignment and plead not guilty. Details on his military record weren't immediately available.

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Online:

http://www.southtexas.va.gov/kd.asp

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