Georgia Tech Procurement Assistance Center

Construction firm pays $2.5 million to settle allegations of exploiting SDVOSB program

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Stronghold Engineering, Inc. (SEI) and its owners have paid the United States $2.5 million to resolve criminal and civil investigations into allegations the firm violated federal law through its involvement in federal government construction contracts obtained by a related company under a government program designated for small businesses owned by service-disabled veterans.

The United States today received the $2.5 million payment pursuant to a civil settlement and a non-prosecution agreement (NPA) with SEI.

Continue reading at:  U.S. Department of Justice

Federal contractor indicted for stealing over $1.2 million from the U.S. Postal Service

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A federal grand jury indicted a construction contractor for stealing over $1.2 million from the United States Postal Service through a more than three-year scheme to defraud through false invoices, Acting United States Attorney Saima S. Mohsin announced today.

Mohsin was joined in the announcement by Steven Suller, Director of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General.

Michael Rymar, 59, of Rochester Hills, stands charged with embezzling government funds from the United States Postal Service (USPS).  From 2015 to 2018, USPS engineers awarded Rymar’s company, Horizons Materials & Management LLC, with over $5 million in contracts for repairs on USPS buildings in Michigan and New York.  But the documentation Rymar provided contained false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs.  Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs.  Over the course of the three-plus-year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.

Continue reading at:  U.S. Department of Justice website

DOJ antitrust division praises early success of Procurement Collusion Strike Force

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As part of its annual Spring Update, the Antitrust Division of the Department of Justice touted the expansion and early success of its Procurement Collusion Strike Force (PCSF), both in coordinating efforts among local, state, and federal enforcers and in leveraging the resources and skills of those stakeholders to identify potential antitrust violations in government procurements.  The DOJ stood up the PCSF in late 2019 with a team of United States Attorneys’ offices from 13 districts and investigative and law enforcement agents from five partner agencies, including the FBI, the Department of Defense, the GSA, and the U.S. Postal Service; it now boasts 22 U.S. Attorneys’ offices, as well as new “like-minded” partners from the Air Force Office of Special Investigations and the Department of Homeland Security OIG.

Continue reading at:  Crowell Moring

South Korean national pleads guilty to a scheme to defraud U.S. Department of Defense

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A South Korean national pleaded guilty today to participating in a scheme to defraud the U.S. Department of Defense.

According to court documents filed in the U.S. District Court in Columbus, Ohio, Hyun Dong Jo of the Republic of Korea was the designated manager under a Defense Logistics Agency contract to provide hazardous waste removal, testing, disposal, and related services to U.S. military installations in South Korea.  In that position, Jo participated in a scheme to falsify laboratory reports submitted under this hazardous waste contract.

From at least as early as February 2015 until at least June 2018, Jo submitted hundreds of falsified or materially altered laboratory reports, misrepresenting to U.S. military officials that laboratory testing and analysis had been performed on samples taken from U.S. military installations located in South Korea, when, in many cases, no such testing was performed.  As part of the scheme, Jo emailed the forged laboratory reports and invoices seeking payment for those reports to the Department of Defense, causing the Defense Financial Accounting Service to wire more than $280,000 in payments.

“This charge reflects the Antitrust Division’s commitment to protecting taxpayer dollars spent overseas,” said Acting Assistant Attorney General Richard Powers of the Department of Justice Antitrust Division.  “Individuals who cheat the U.S. military in the performance of contracts will be held accountable.  We hope this guilty plea will serve as a deterrent for other contractors who contemplate obtaining illicit gains through engaging in fraud while providing services for the U.S. military domestically or abroad.”

Continue reading at:  U.S. Department of Justice

Construction company owners plead guilty to defrauding SDVOSB program

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Two Texas construction company owners have pleaded guilty in a long-running scheme to defraud the United States.

Michael Wibracht of San Antonio, Texas, the former owner of several companies in the construction industry, conspired to defraud the United States in order to obtain valuable government contracts under programs administered by the U.S. Small Business Administration (SBA) for which neither his nor his co-conspirators’ companies were eligible.  One co-conspirator, Ruben Villarreal, also of San Antonio, pleaded guilty on Nov. 20, 2020, to participating in the same conspiracy.

“For many years, this conspiracy undermined the integrity of the federal procurement process,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice Antitrust Division.  “This conduct robbed opportunities from honest businesses, especially those owned by historically disadvantaged individuals and service-disabled veterans.”

Continue reading at:  U.S. Department of Justice

Contractor to pay $2.2 million to settle False Claims Act allegations

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Deputy United States Attorney Louis D. Lappen announced that SAP Public Services, Inc. has agreed to pay the United States more than $2.2 Million to resolve allegations that it violated the False Claims Act by failing to pay required fees on contracts it signed pursuant to agreements with the United States General Services Administration (GSA).

SAP Public Services is a subsidiary of SAP SE, a multinational software engineering and support company, and its U.S. subsidiary, SAP America, Inc., headquartered in Newtown Square, Pennsylvania.

In 1998 and 2009, GSA awarded SAP Public Services contracts under the Multiple Award Schedule (MAS) program.  The MAS program provides an efficient, streamlined process for federal, state, and local government buyers to purchase goods and services from commercial firms at discounted prices.  SAP Public Services sold software engineering and support to government customers under specified conditions.  SAP Public Services canceled these contracts in 2014.  Under the terms of their MAS contracts, SAP Public Services was required to pay an Industrial Funding Fee (IFF) to GSA.  This fee covers the cost of GSA’s administration of its contracting and purchasing programs, which save federal, state, and local government agencies the time and expense of awarding individual procurements and provide volume purchase prices, greater purchasing flexibility, and other benefits to those agencies.

Continue reading at:  U.S. Department of Justice

 

Federal contractor agrees to pay more than $6 million to settle overbilling allegations

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Virginia-based Information Innovators Inc. (Triple-I) has agreed to pay the United States $6.05 million to resolve allegations that a predecessor company, Creative Computing Solutions Inc. (CCSi), violated the False Claims Act by knowingly overbilling the U.S. Department of Homeland Security (DHS) for work performed by CCSi employees who lacked required job qualifications.

Triple-I, which provides IT services and solutions to federal agencies, acquired Maryland-based CCSi in 2015.  CCSi formerly provided IT services to DHS pursuant to an Enterprise Acquisition Gateway for Leading Edge Solutions Contract (EAGLE Contract).  The settlement resolves allegations that, from October 2007 to April 2014, CCSi knowingly submitted claims for payment to DHS for work performed by CCSi employees who lacked required job qualifications.  CCSi allegedly violated the terms of the EAGLE Contract by using under-qualified personnel who were billed to DHS at higher rates reserved for more qualified employees.

Continue reading at:  U.S. Department of Justice

Deputy Associate Attorney General sheds light on DOJ’s FCA priorities at annual False Claims Act conference

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“Enforcing the False Claims Act is a top priority for the Department—not just for our office,” said Deputy Associate Attorney General Stephen Cox, the Keynote Speaker for the 2020 Advanced Forum on False Claims and Qui Tam Enforcement, hosted by the American Conference Institute.  Deputy Cox reflected on FCA recoveries in 2019 and previewed DOJ’s FCA priorities for 2020.  Specifically, his keynote address on Monday, January 27 focused on: (1) enforcement; (2) cooperation credit; and (3) third-party financing.

Continue reading at:  Arent Fox

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