Set-Asides and Preferences
This archive displays posts tagged as relevant to fraud in government contracting set-aside and preference programs. You may also be interested in the following pages:
September 4, 2019
New Hampshire-based North American Specialty Insurance Company (NASIC) has agreed to pay $1 million to settle allegations of violating the False Claims Act by providing bonding to South Carolina general contractor Claro Company, Inc., despite having actual or constructive notice that Claro was making false and fraudulent statements to claim certification as a small business owned and controlled by socially and economically disadvantaged individuals under the Small Business Administration Section 8(a) Business Development Program. By turning a blind eye, NASIC enabled Claro Company to continue bidding for set-aside contracts under the 8(a) program. USAO WDNCAugust 20, 2019
Luke Hillier, the majority owner and former CEO of defense contractor ADS, Inc., will pay $20 million to resolve claims that he caused the submission of false claims to the government by fraudulently representing that the company qualified as a small business concern eligible for federal contracts reserved for such businesses. In 2017, ADS and another company officer paid $16 million to resolve claims from the same conduct, bringing the government's total recovery to over $36 million. The case was initiated by a whistleblower complaint filed by Ameliorate Partners, LLP, which will receive $3.6 million of the Hillier settlement. DOJAugust 16, 2019
Sunrise Systems of Brevard, Inc. will pay $500,000 to resolve charges that in a contract to perform demolition work for NASA, Sunrise claimed that it would partner with V&R Enterprises, making Sunrise eligible to receive Small Business Administration funding. In fact, Sunrise performed nearly all of the work, violating SBA labor and work requirements. USAO MD FLAugust 13, 2019
Classic Site Solutions, Inc. (CSS), a Massachusetts-based construction management company, and owner Cheryl Sady, have agreed to pay $1.3 million to settle allegations that CSS’s conduct between 2009 and 2015 violated the False Claims Act. In order to access government contracts set aside for companies located in Historically Underutilized Business Zones (HUBZones), CSS and Sady allegedly submitted false statements to the Small Business Administration (SBA) indicating their principal office was located in a HUBZone, which allowed them to fraudulently bid on and win contracts worth millions of dollars. USAO CTJune 28, 2019
Following his conviction for illegally obtaining $11 million in contracts intended for service-disabled veteran-owned small businesses, a government contractor and his company have been ordered to pay $3.2 million, with $400,000 to be paid by the contractor, Andrew Otero, and $1.8 million to be paid by his company, A&D General Contracting. Otero has also been sentenced to 1.5 years in prison. USAO SDCAFraud in GSA Contracts: How to Report it Under the False Claims Act for a Whistleblower Reward
Posted 05/13/19
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