Tag Archives: SDVOSB fraud

SmallGovCon Week In Review: Sept. 2-6, 2013

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SmallGovCon is now more than a year old (time flies!) and it’s time to make a few changes to enhance the site for our regular readers (and those who have yet to become regular readers).

As part of that effort, I am pleased to announce the debut of SmallGovCon Week In Review.  Every Friday, SmallGovCon Week In Review will spotlight a number of current news articles, editorials, and other writings.

In this week’s SmallGovCon Week In Review, the Washington Post focuses on the VA’s SDVOSB program, Federal News Radio spotlights new Department of Labor hiring benchmarks for federal contractors, Washington Technology offers advice from three of the country’s fastest-growing government contractors, and much more.

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SDVOSB Fraud: Business Owner Gets Prison Time

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A federal judge has sentenced a business owner to one year and one day in prison stemming from a guilty plea to charges of SDVOSB fraud.

The sentence, which also imposes a $399,000 fine, brings an end to a SDVOSB fraud story I first wrote about last year.

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SDVOSB Fraud: DOJ Alleges Non-SDVs Received $13 Million

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Two brothers fraudulently misrepresented themselves to be service-disabled veterans and received $13 million in VA SDVOSB set-aside awards, according to a U.S. Department of Justice press release.

The brothers, Raymond Testa and Gerald Testa, both of New York, were recently arrested and charged with major wire fraud.  If convicted, they face penalties of up to 10 years in prison and/or a fine of up to $1 million.

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A Slap On The Wrist? Contractor Avoids Jail Time For SDVOSB Fraud

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A man who lied about being a service-disabled veteran–and received nearly $6 million in VA SDVOSB set-asides–will not spend a single day in jail.

According to a Department of Justice press release, the man in question, John Witty, was sentenced to a fine, probation, and community service.  Yes, Witty’s wallet will be lighter, and maybe there were extenuating circumstances not evident from the press release–but the lack of jail time seems a tad generous.

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SDVOSB Fraud: Justice Department Indicts Construction Company Owner

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The U.S. Department of Justice has indicated David E. Gorski, an owner of Legion Construction, Inc., for alleged service-disabled veteran-owned small business fraud.  The indictment alleges that Gorski, a non-veteran, fraudulently represented that Legion was a SDVOSB to win federal SDVOSB set-aside contracts, and used genuine service-disabled veterans as figureheads in an attempt to avoid detection.

VetBizCentral, an organization providing various services to veteran entrepreneurs, has posted a full copy of the Gorski indictment on its website.  The allegations are well worth a closer look.

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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.