Procurement Fraud: Couple Pleads Guilty to $30 Million Scheme (And More)

A Maryland couple has pleaded guilty to defrauding the government in connection with more than $30 million in set-aside contracts.

And, apparently not content with “mere” procurement fraud, the couple has also entered guilty pleas to charges of fraud under the Service Contract Act and tax evasion.

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Supreme Court Will Hear Kingdomware SDVOSB Dispute

The U.S. Supreme Court has agreed to hear an appeal filed by Kingdomware Technologies, Inc.

News outlets are reporting that the Supreme Court will take on the question of whether the VA’s “Veterans First” rules permit the VA to circumvent SDVOSBs by using the Federal Supply Schedule.  The case is an appeal from a 2014 decision of the U.S. Court of Appeals for the Federal Circuit, in which a three-judge panel ruled 2-1 in favor of the VA.

The Supreme Court grants only a small fraction of the petitions for certiorari filed with it, so just getting in the courthouse door is a victory of sorts for Kingdomware.

Much more on the pending Supreme Court case as I get the details.

Anti-Kickback Act Settlement Costs Contractor $2.72 Million

A New York contractor has agreed to pay $2.72 million to resolve claims that it violated the Anti-Kickback Act and False Claims Act in connection with its prime contract work on an EPA facility.

According to a Department of Justice press release, Sevenson Environmental Services Inc. accepted more than $1.6 million in kickbacks from six subcontractors, then passed the majority of those kickbacks through to the EPA.

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8(a) Fraud: Guilty Plea In Pass-Through Case

A California man faces up to 20 years in prison after pleading guilty to 8(a) fraud charges.

According to a Department of Justice press release, Wesley Burnett admitted that his non-8(a) companies performed all of the work required under various 8(a) set-aside contracts.  And if the pass-through scheme wasn’t enough, Burnett also admitted to falsely self-certifying his companies as SDVOSBs and SDBs, resulting in additional unjustified contract awards.

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SDVOSB Fraud: Business Owner Faces 51 Months In Prison

The co-owner of a Missouri construction company faces the likelihood of 51 months in jail after pleading guilty to SDVOSB fraud charges.

According to a Department of Justice Press release, Michael Parker admitted that he and his father, Warren Parker, falsely claimed that Warren was a service-disabled veteran in order to receive more than $7 million in SDVOSB contracts.

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SDVOSB Fraud: Guilty Plea In “Rent-A-Vet” Case

A Nebraska man has pleaded guilty to fraud and money laundering charges stemming from a SDVOSB “rent-a-vet” scheme under which an ineligible business received 45 SDVOSB contracts.

According to a Department of Justice press release, the man faces up to 24 months in prison and financial penalties.  He and his companies also have been suspended from government contracting and face the likelihood of debarment.

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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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