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

Tagged in: FCA Federal, Government Programs Fraud, Set-Asides and Preferences, Whistleblower Case, Whistleblower Rewards,