Kansas City Contractor Indicted for Fraud

January 23, 2017

Construction Company Owner, Kansas City Veteran Indicted in ‘Rent-a-Vet’ Scheme

Source: Kansas City infoZine, Staff, January 14, 2017

The former owner of a local construction company and a Kansas City, MO veteran were indicted by a federal grand jury Friday for their roles in a “rent-a-vet” scheme to fraudulently obtain more than $13.8 million in federal contracts.
Kansas City, MO – infoZine – Jeffrey K. Wilson, 51, of the Village of Loch Lloyd in Belton, MO Paul R. Salavitch, 56, of Kansas City, MO and Patriot Company, Inc., a business located in Kansas City, MO were charged in an eight-count indictment returned by a federal grand jury in Kansas City, MO.

The indictment alleges that Wilson, Salavitch and the Patriot Company participated in a conspiracy to defraud the government by falsely representing Patriot Company as a veteran-owned or service-disabled veteran-owned small business in order to fraudulently obtain approximately $13.8 million in federal government construction contracts for work in nine states.

According to the indictment, Patriot Company was a pass-through or front company for a Greenwood, MO construction company owned by Wilson during the scheme. Conspirators allegedly used Salavitch’s veteran and service-disabled veteran status in a “rent-a-vet” scheme to bid on at least 20 government contracts and receive approximately $13.8 million to which Patriot Company would not have otherwise been entitled to receive because those contracts were set-aside exclusively for legitimate veteran-owned or service-disabled veteran-owned small businesses. As a result of the fraud scheme, legitimate veteran owned and run businesses were not awarded these contracts.  READ MORE….

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