Tag Archives: fraud

False SDVOSB Certifications Land New York Man Behind Bars

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False SDVOSB certifications have earned a New York man nearly three and a half years in prison.

In May, I brought you the story of John White’s conviction for false SDVOSB certifications, and noted that sentencing was yet to come.  Well, last week the federal judge handed down a sentence, and Mr. White is no longer a free man.

According to a U.S. Department of Justice press release, White was sentenced to 41 months in prison for defrauding the government by falsely claiming to be a service-disabled veteran.  White’s company was awarded three SDVOSB set-aside contracts and one VOSB set-aside contract as a result of the fraud.  When the government began investigating White’s company, White tried to recruit an actual service-disabled veteran to pose as the company’s majority owner.

John White will now have a few years in the Big House to consider the consequences of falsely stealing the honor of our nation’s service-disabled veterans and falsely stealing four contracts intended for those veterans.  If the DOJ has has any sense of irony, it will ship him to a federal facility where genuine SDVOSBs are on-site providing services.

Convictions in Massive DOT DBE Fraud Case Put Spotlight on Illegal Small Business “Pass-Throughs”

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“Guilty.”

That was the verdict Pennsylvania jurors handed down on 26 of 30 charges against Joseph W. Nagle, stemming from what an FBI press release called a 15-year scheme to commit fraud within the DOT’s Disadvantaged Business Enterprise program.  Nagle, the former president, CEO and part-owner of Schuylkill Products Inc. was convicted of conspiracy to defraud the DOT, 11 counts of wire fraud, six counts of mail fraud, and 11 counts of money laundering, among other charges.  Nagle faces the possibility of many years in federal prison and millions of dollars in fines and restitution.

Nagle’s crimes, which involved using a small company as a “front” to pass DBE work through to non-DBE concerns, should serve as a warning that small government contractors can face penalties much more severe than a successful SBA size protest for serving as “pass-throughs” to other businesses.

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