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.
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.
The government has accused a service-disabled veteran who was employed full-time as a U.S. Postal Service Carrier is accused of being a “rent-a-vet” used to obtain contracts for his brother’s company.
According to a Department of Justice press release, a grand jury has indicted both men, as well as a business partner for SDVOSB fraud–and all three face the potential of significant jail time.
A contractor has agreed to pay the government $1 million–and to dissolve as an ongoing entity–to resolve allegations that it falsely claimed SDVOSB status in order to receive VA SDVOSB set-aside contracts.
According to a government press release, the settlement comes after VA investigators alleged that the company’s non-veteran partner made all important corporate decisions, while the service-disabled veteran partner spent much of his time away from the company.
A Nebraska man has pleaded guilty to fraud and money laundering charges stemming from a SDVOSB “rent-a-vet” scheme under which an ineligible business received 45 SDVOSB contracts.
According to a Department of Justice press release, the man faces up to 24 months in prison and financial penalties. He and his companies also have been suspended from government contracting and face the likelihood of debarment.