SDVOSB Fraud: Indictment In “Secret Side Agreement” JV Case

SDVOSB fraud allegations, stemming from a “secret side agreement” between two joint venture partners, have resulted in a grand jury indictment against the companies and their owners.

According to a Department of Justice press release, an SDVOSB and non-SDVOSB executed a joint venture agreement that appeared to meet the SBA’s requirements, but later undermined the JV agreement with a secret agreement that provided that the non-SDVOSB would run the jobs–and receive 98% of the revenues.

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SDVOSB Fraud: Indictment In $13.8 Million “Rent-A-Vet” Case

Two Missouri men have been indicted for allegedly perpetrating an SDVOSB “rent-a-vet” scheme to fraudulently obtain 20 contracts totaling more than $13.8 million.

According to a Department of Justice press release, the veteran in question nominally served as the company’s President, but did not control the company’s strategic decisions or day-to-day management–in fact, the veteran apparently was working full-time for the DoD instead of managing the SDVOSB.

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SmallGovCon Week In Review: October 31-November 4, 2016

Wow!  After 108 years, my Chicago Cubs are the World Series champions!  I was in Minneapolis for this year’s National Veterans Small Business Engagement (which was an amazing event), and split my Game 7 viewing between the hotel bar and my room.  I wish I could have been at Wrigley Field, and I wish that my grandfather (who really started the family on the whole Cubs thing) could have been alive to see it.  But I am sure somewhere he is smiling along with all the other Cubs fans who couldn’t see this moment.

While my week consisted mostly of convention halls and Cubs, there was no shortage of news in the world of government contracting.  In this week’s SmallGovCon Week In Review, a company was able to continue contracting with the VA even after it was indicted and convicted of fraud, a new report indicates that WOSBs are still being shut out of opportunities to earn major government contracts, a look ahead to the election and what changes may lie for federal contractors, a contractor gave a high-ranking government official free living space–and didn’t violate the ethics rules–and much more.

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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.

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SDVOSB Fraud: “Pass-Through” Voided Contract, Says CBCA

An SDVOSB set-aside contract was void–and unenforceable against the government–because the prime contractor had entered into an illegal “pass-through” arrangement with a non-SDVOSB subcontractor.

In a recent decision, the Civilian Board of Contract Appeals held that a SDVOSB set-aside contract obtained by misrepresenting the concern’s SDVOSB status was invalid from its inception; therefore, the prime contractor had no recourse against the government when the contract was later terminated for default.

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SmallGovCon Week In Review: August 15-19, 2016

With the Olympics coming to a close this Sunday, we can look forward to getting back to our usual sleeping patterns without the lure of athletes seeking gold in Rio. So while preparations are ongoing for the closing ceremony and the eventual torch hand off to Tokyo, we continue to work to bring you the top government contracting news and notes for the week.

In this week’s SmallGovCon Week in Review, a businessman will serve prison time after stealing a veteran’s identity and using it to obtain SDVOSB contracts, the first protest of the Alliant 2 solicitation has been filed, faulty military helmets manufactured at a Texas prison under a government contract have been recalled, and much more.

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SmallGovCon Week In Review: June 6-10, 2016

While we patiently await the Supreme Court’s pending decision in Kingdowmware Technologies, Inc. v. United States, there is still plenty happening in the world of government contracting.

This week’s edition of SmallGovCon Week In Review is packed with important news and commentary, including stories on the Army looking to end its ‘use it or lose it’ budgeting, the continued push for category management, a sneaker company looking to nix an exemption in the Berry Amendment, allegations of SDVOSB fraud, and much more.

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