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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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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