Small government construction contractors often have difficulty obtaining required bonding–which sometimes causes them to turn to their subcontractors for bonding assistance.
But what if a subcontractor cannot (or will not) provide the necessary bonding assistance? According to a recent federal grand jury indictment, one California man took advantage of these situations by offering fraudulent bonds–at higher premiums–to government contractors. The man now faces the possibility of more than 30 years in prison.
A federal judge has sentenced a business owner to one year and one day in prison stemming from a guilty plea to charges of SDVOSB fraud.
The sentence, which also imposes a $399,000 fine, brings an end to a SDVOSB fraud story I first wrote about last year.
If you are planning to defraud the U.S. Government (and I certainly hope that you are not), your best bet is to avoid the U.S. Department of Transportation’s Disadvantaged Business Entity program.
Yesterday, the Department of Justice announced that a DOT DBE subcontractor had agreed to settle “pass-through” fraud claims for $936,000. The DOJ’s announcement comes on the heels of a June 6 press release touting a settlement of nearly $3 million, also stemming from alleged DOT DBE fraud.
An Idaho contractor has been indicted on federal charges stemming from allegations that she fraudulently lowered her personal net worth in order to enable her company to be certified in the SBA 8(a) Program and the Department of Transportation’s Disadvantaged Business Enterprise Program.
According to a Department of Justice press release, the 8(a) and DBE fraud netted the contractor upwards of $9 million–and the Government wants its money back.
A Florida resident has pleaded guilty in an 8(a) Program fraud case that seemingly has it all in terms of small business violations, from affiliation to subcontracting limits.
According to a press release issued by the U.S. Attorney’s Office for the Eastern District of Virginia, Michael Dunkel has pleaded guilty on charges of major government fraud, and faces the potential of significant prison time when sentencing occurs this fall.
An Alabama-based construction company has agreed to pay more than a million dollars to settle allegations that it violated the False Claims Act by fraudulently representing that it was mentoring a minority-owned small business under the Department of Defense’s mentor-protege program.
The settlement puts to rest the Justice Department’s False Claims Act contention that the contractor used its so-called “protege” as little more than a pass-through entity and failed to provide real mentoring services to the small business.
Two brothers fraudulently misrepresented themselves to be service-disabled veterans and received $13 million in VA SDVOSB set-aside awards, according to a U.S. Department of Justice press release.
The brothers, Raymond Testa and Gerald Testa, both of New York, were recently arrested and charged with major wire fraud. If convicted, they face penalties of up to 10 years in prison and/or a fine of up to $1 million.