Settlement Reached on False 8(a) Program Status

Contractor pays $7.8M for falsely claiming 8(a) status

Source: FederalTimes, Article written by Aaron Boyd, published July 7, 2015

A government contractor agreed to pay $7.8 million to settle claims it falsely represented itself as a small disadvantaged business, illegally qualifying for federal contracts under the Small Business Administration’s 8(a) program.

LB&B Associates agreed to the multimillion-dollar settlement after two former employees filed suit as whistleblowers under the False Claims Act, stating that the principal, Lily Brandon, was not actually overseeing day-to-day operations.

As part of the 8(a) program, companies managed by socially and economically disadvantaged persons can compete for select set-aside contracts that might have otherwise gone to larger firms. While Brandon qualified under this description, she “allegedly failed to exercise actual control over LB&B’s operations,” according to the Department of Justice.

The LB&B website lists Brandon as honorary chairman of the board. David Van Scoyoc is listed as the company’s chief operating officer.

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