SDVOSB & 8(a) Fraud: Prison Sentences Handed Down

A North Carolina couple is heading to prison after being convicted of defrauding the SDVOSB and 8(a) Programs.

According to a Department of Justice press release, Ricky Lanier was sentenced to 48 months in federal prison and his wife, Katrina Lanier, was sentenced to 30 months for their roles in a long-running scheme to defraud two of the government’s cornerstone socioeconomic contracting programs.

Continue reading

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.

Continue reading

8(a) Program Fraud: Contractor Will Pay $7.8 Million

A former 8(a) program participant has agreed to pay nearly $8 million to settle allegations of 8(a) program fraud.

According to a Department of Justice press release, LB&B Associates Inc. will pay $7.8 million to resolve claims that it improperly obtained 8(a) certification (and 8(a) contracts) even though it was not controlled by a disadvantaged individual.

Continue reading

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.

Continue reading

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.

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 Fraud: Contractor Indicted; Government Seeks $9 Million

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.

Continue reading