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.
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.
Another week is almost over, and that means it’s time to bring you the SmallGovCon Week In Review. This week we look at GSA’s IT consolidation efforts, a bid-rigging scheme that resulted in a seven-year prison sentence, allegations of SDVOSB fraud, and much more.