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Detecting Fraud, Waste, and Abuse
Detecting and reporting fraud is in the best interest of all program participants. Fraud undermines public confidence in the public benefits of SBA programs, which support economic opportunity, small business growth and job creation. SBA works closely with the Department of Justice and the Office of Inspector General to seek redress for any fraud or misrepresentations that a firm or individual makes with regard to HUBZone Program participation; below are cases that highlight this combined effort. To report fraud, waste and abuse or for further information, click here.
Canton man sentenced to prison, ordered to repay $6.7 million, for fraud in getting federal contracts
September 15, 2015
A Canton man was sentenced to one year in prison and ordered to repay $6.7 million for making false representations about the company’s office location so it could obtain a HUBZone certification and qualify for federal contracts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. See the full article.
Kentucky-Based Defense Contractors, Owners Agree to Pay $6.25 Million to Resolve Allegations That They Submitted False Statements and Claims to Obtain Army Contracts Intended for Small Businesses
December 21, 2012
Kentucky-based Lusk Mechanical Contractors and Commonwealth Technologies, and their owners, Harry Lusk and Wendell Goodman, have agreed to pay $6.25 million to resolve allegations that they submitted false statements to the Small Business Administration and false claims to the Army, the Justice Department announced today. See the full article.
Alabama Defense Contractor and Its President to Pay $200,000 to Resolve False Claims Act Allegations
September 21, 2011
Future Research Corp., located in Huntsville, Ala., and its president, Jesse Nunn, have agreed to pay the United States $200,000 to settle claims that they inappropriately obtained contracts from the Navy, the Justice Department announced today. The contracts had been set aside for companies that qualified for the Small Business Administration’s (SBA) Historically Underutilized Business Zone (HUBZone) program. Future Research Corp. bid on and received the Navy contracts even though it was not qualified for the HUBZone program at that time. See the full article.
Maryland Contractors and Their President to Pay Settlement for Falsely Obtaining Hubzone Contracts
October, 2010
WASHINGTON – CSI Engineering and CSI Design Build, located in Beltsville, Md., and their president, Debdas Ghosal, have agreed to pay the United States $200,000 to settle claims that they used false statements to obtain contracts from several government agencies, the Justice Department announced today. The contracts had been set aside for companies that qualified for the Small Business Administration’s Historically Underutilized Business Zone (HUBZone) program. Click here to read this news release in full.
Georgia Defense Contractor and Its President to Pay $750,000 to Resolve False Claims Act Allegations
July, 2010
WASHINGTON – Quantum Dynamics Inc, located in Macon, Ga., and its president, Audrey Price, have agreed to pay the United States $750,000 to settle claims that they fraudulently obtained contracts from the Army, the Justice Department announced today. The contracts had been set aside for companies that qualified for the Small Business Administration’s Historically Underutilized Business Zone (HUBZone) program. Quantum was allowed to participate in the HUBZone program based on false statements made to the government.