May 4, 2020
Two New York construction companies and their associates have agreed to pay $4.5 million
to resolve allegations of defrauding the U.S. Small Business Administration (SBA) and exploiting federal contracting opportunities reserved for veteran-owned small businesses and small businesses located in historically underutilized business zones (HUBZones). Northland Associates, Inc.
, its president James Tyler
, The Diverse Construction Group
, and bond agent Rose & Kiernan Inc.
allegedly failed to disclose and took steps to conceal the extent to which Diverse, which is 51% vetern-owned and 49% owned by senior Northland officials, took direction from Northland. The government’s investigation was triggered by whistleblower lawsuits; the whistleblowers in this case will receive $1 million of settlement proceeds. USAO SDNY