Tag Archives: qui tam

SDVOSB Fraud: $5 Million Settlement In Rent-A-Vet Case

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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.

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Buy American Act Fraud: Contractor To Pay $3 Million

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A government contractor will pay a total of $3 million to resolve civil and criminal allegations that it violated the Buy American Act by using non-compliant foreign materials on federally funded construction projects–and falsified documents in an attempt to hide its violations.

According to a Department of Justice Press release, Novum Structures LLC not only will pay $3 million, but will be debarred from federal contracting.

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HUBZone Fraud: $250,000 Settlement In “Virtual Office” Case

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A small business and its owner have agreed to pay $250,000 to resolve HUBZone fraud allegations, including a claim that the company’s HUBZone office was a “virtual” location where no employees actually worked.

According to a Department of Justice press release, Air Ideal, Inc. and its majority owner have also agreed to pay the government five percent of the company’s gross revenues over the next five years.

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HUBZone Fraud: Government Alleges “Virtual Office” Scheme

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A HUBZone contractor has been accused of HUBZone program fraud for allegedly falsely claiming to be located in a HUBZone, when in fact the office in question was a “virtual office” where no employees worked.

According to a Department of Justice press release, the contractor not only misrepresented its principal office location, but submitted a fabricated lease to the SBA as part of its HUBZone application.

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