Affiliation Allegations Result In $5.8 Million Settlement

A group of companies has agreed to pay $5.8 million to resolve a False Claims Act case stemming from alleged affiliations among the companies.

According to a Department of Justice press release, the settlement resolves claims that En Pointe Gov Inc (now known as Modern Gov IT Inc.) falsely certified that it was a small business for purposes of federal set-aside contracts, despite alleged affiliations with four other companies–all of whom will also pay a portion of the settlement.

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Small Business Fraud: Guilty Plea In Major SBA Pass-Through Case

A former owner and officer of a large business has pleaded guilty to conspiracy charges stemming from an illegal pass-through scheme.

According to a Department of Justice press release, Thomas Harper not only conspired to evade limitations on subcontracting, but obstructed justice during a SBA size protest investigation of his company’s relationship with a putative small businesses.

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SDVOSB Fraud: $5 Million Settlement In Rent-A-Vet Case

A New York business has agreed to pay $5 million, plus interest, to resolve allegations that its CEO, President, and others engaged in a scheme to fraudulently obtain SDVOSB set-aside contracts.

According to a Department of Justice press release, the CEO and President of Hayner Hoyt Corporation created a company supposedly run by a service-disabled veteran.  However, the veteran in question was not involved in making important business decisions, but was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property.  Although the DOJ is perhaps too polite to use the term “rent-a-vet” in its press release, that’s exactly what this scheme sounds like.

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Buy American Act Fraud: Contractor To Pay $3 Million

A government contractor will pay a total of $3 million to resolve civil and criminal allegations that it violated the Buy American Act by using non-compliant foreign materials on federally funded construction projects–and falsified documents in an attempt to hide its violations.

According to a Department of Justice Press release, Novum Structures LLC not only will pay $3 million, but will be debarred from federal contracting.

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DBE Fraud: $5 Million Settlement In Pass-Through Case

A large business has agreed to pay nearly $5 million to resolve False Claims Act allegations that it participated in a “pass-through” scheme designed to take advantage of the Department of Transportation’s Disadvantaged Business Entity program.

According to a Department of Justice press release, HD Supply Waterworks conspired with subcontractors to list a now-defunct Native American-owned company as a subcontractor, when in fact the subcontractor’s work was passed through to Waterworks.

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8(a) Fraud: 21-Month Prison Sentence In Pass-Through Case

The owner of a former 8(a) program participant has been sentenced to 21 months in prison in connection with an 8(a) program “pass-through” scheme.

Under the plea agreement, the former 8(a) program owner also agreed to three years of supervised release and the forfeiture of $554,541.07.

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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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