June 30, 2016
Small Business Fraud: Guilty Plea In Major SBA Pass-Through Case
Source: SmallGovCon, Steven Koprince, June 29, 2016
A former owner and officer of a large business has pleaded guilty to conspiracy charges stemming from an illegal pass-through scheme.
According to a Department of Justice press release, Thomas Harper not only conspired to evade limitations on subcontracting, but obstructed justice during a SBA size protest investigation of his company’s relationship with a putative small businesses.
The DOJ press release states that Harper is the former owner and officer of MCC Construction Company. Between 2008 and 2012, MCC entered into an arrangement with two 8(a) companies. Under the arrangement, these companies were awarded set-aside contracts “with the understanding that MCC would, illegally, perform all of the work.” The scheme was successful: MCC ultimately performed 27 government contracts worth $70 million.
During the relevant time period, the GSA filed a size protest with the SBA, arguing that one of the 8(a) companies was affiliated with MCC. Then, Harper and others “took steps to corruptly influence, impede, and obstruct the SBA size determination protest by willfully and knowingly making false statements to the SBA about the extent and nature of the relationship between MCC and one of the companies.” READ MORE….
Does your business need assistance with understanding set-aside programs. Contact your nearest PTAC to learn more.
For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.