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.

Continue reading

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.

Continue reading

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.

Continue reading

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.

Continue reading

Illegal Gratuities: Criminal Sentence For Former Air Force Official

A former Air Force official has been sentenced to probation and a fine for accepting illegal gratuities from a government contractor.

According to a Department of Justice press release, Dennis Toenjes, Sr., was sentenced to three years of probation and fines totaling $600 for accepting gratuities worth $9,382.01.  The first six months of Toenjes’s probation will be served in home confinement.

Continue reading

SDVOSB Fraud: Non-Veteran Arrested For Claiming SDVOSB Status

A New Jersey woman has been arrested and charged with procurement fraud for allegedly falsely certifying that her company was a SDVOSB.

According to a Department of Justice press release, Miriam Friedman falsely claimed that her father-in-law, a retired veteran, owned and operated the business.  According to the DOJ, Friedman’s father-in-law not only had minimal involvement in the business, but is not service-disabled.

Continue reading

DOJ Files Complaint In HUBZone Fraud Cause

The Department of Justice has filed a complaint accusing an Ohio construction contractor and its owner of fraudulently obtaining HUBZone certification and HUBZone set-aside contracts.

According to a DOJ press release, the government is alleging that William Richardson, the owner of TAB Construction Co. Inc., made false statements regarding TAB’s principal office to obtain HUBZone certification, then used that certification to win millions of dollars in HUBZone set-aside contracts.

Continue reading