GSA Schedule Sales of Chinese Products Result In $2.3 Million False Claims Settlement

Sales of Chinese products off the GSA Schedule has resulted in a $2.3 million False Claims Act settlement.

According to a Department of Justice press release, Samsung Electronics America, Inc. has agreed to the settlement to resolve allegations that Samsung informed GSA Schedule resellers that certain products were manufactured in “designated countries” under the Trade Agreements Act, when in fact those products were manufactured in China.

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Davis-Bacon Act Fraud: Subcontractor’s Owner Sentenced

Davis-Bacon Act fraud has resulted in a criminal sentence for the owner of a now-defunct construction subcontractor.

According to a Department of Justice press release, the subcontractor’s owner has been sentenced to four years of probation (including 18 months of home confinement) and ordered to pay $164,627 in restitution, after pleading guilty to charges of conspiracy to pay employees less than prevailing wages on a federal construction project in Boston.

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8(a) Fraudster Hit With 42-Month Prison Sentence

A federal judge has sentenced a Maryland man to 42 months in prison for fraudulently obtaining contracts under the 8(a) Program.

According to a Department of Justice press release, after Vernon J. Smith III serves his prison sentence, he will be subject to three years of supervised release.  And on top of the prison sentence, the federal judge ordered Smith to pay more than $7 million in restitution and forfeiture.

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SDB Fraud: Subcontractors Pay $1.9 Million Settlement

Five subcontractors and two individuals have paid the government nearly $1.9 million to resolve allegations that they violated the False Claims Act by falsely representing themselves as small disadvantaged businesses.

According to a Department of Justice press release, the subcontractors self-certified as SDBs to their prime contractors, and those self-certifications were then passed on to the government.

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DOT DBE Fraud: Construction Company Admits False Statements In “Pass-Through” Case

A Connecticut construction company has agreed to pay more than $2.4 million to resolve fraud claims related to an alleged DOT DBE “pass through” scheme.

According to a DOJ press release, as part of the resolution, the construction company has admitted that it made false statements to the government that a DBE performed more than $3 million in subcontracted work, when in fact, that work was performed by a non-DBE.

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8(a) Fraud: Contractor Fraudulently Obtained $52 Million, Says DOJ

A Maryland man has pleaded guilty in an 8(a) fraud case involving a company that received more than $52 million in 8(a) contracts to which it was not entitled.

According to a Department of Justice press release, Vernon Smith pleaded guilty to charges that he (not the company’ s disadvantaged majority owner) exercised complete control over the company’s day-to-day management and long term decision making.

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8(a) Program Mentor To Pay $928,000 False Claims Act Settlement

An 8(a) Program mentor has agreed to pay a False Claims Act settlement of $928,000.  The settlement stems from the government’s claims that the mentor abused the 8(a) mentor-protege program.

According to a Department of Justice press release, the mentor firm performed eight 8(a) prime contracts on behalf of its protege–without an SBA-approved joint venture.  The government also contended that the mentor’s extensive role resulted in the protege firm failing to meet the applicable limitation on subcontracting.

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