The focus on SDVOSB fraud has significantly increased over the last five years. Service-Disabled Veteran-Owned small business find themselves facing conspiracy charges while also submitting false claims in an effort to defraud the government and ultimately obtain SDVOSB set-aside contracts with the VA or other government contracting agencies.
Management and Control of SDVSOB Companies
One of the major approaches to fighting SDVOSB fraud cases is when the government looks to see who actually manages and controls the entity. Some obvious problems that help the government to indict CEOs include:
- No evident that CEO’s did not manage the company’s long-term decision
- Not making the day-to-day decisions or overseeing the company daily operations
- Find that SDVOSB company owners still work for the federal government or DOD agencies
These all important considerations when assessing a federal small business fraud case.
Ability to Control is Still a Dangerous Weapon
Even if there is no evidence of actual control of your SDVOSB company, fraud cases can still success when federal law enforcement agencies find that another company or person (or both) have the ability to control the business. Unfortunately these detailed rules surface when companies are being indicted in small business fraud cases.
SVSOB Fraud and Conspiracy
There are cases where individuals are indicted because the underlying argument by the government is that the conspirators knew what they were doing was wrong and they took the steps to conceal it.
Furthermore, the ultimate goal was to submit false information and violate the rules in order to secure government contracts.
Government contract fraud is alive and well. In addition to conspiracy and SDVOSB fraud cases, prosecutors also look for false statements made to the government and also the possibility of wire fraud since the defendants have allegedly used fax machines and telephones to gain award of federal contracts.
Pass Through Contracts
Any addition to the traditional False Claims indictments in SDVOSB fraud cases, the main problem found that the SDVOSB has engaged in pass-through contracting with other ineligible companies. Small business fraud schemes by veteran and companies with service-disabled veteran status is commonplace in today’s federal procurement age.
Potential Problems for Defendants
Many government contract and small business frau defendants find themselves at great disadvantage because the criminal defense lawyer hired may not be well-versed in the substantive laws that government small business programs such as service disabled veteran own business programs. As a result, the federal prosecutors have an advantage because they have the resources to count on other agencies such as the VA or SBA to ‘fill in the gaps.”
Having the right professionals on your team that can contribute to defending against SBA and SDVOSB fraud can put a potential defendant is a stronger position
For immediate help and consultation in a pending small business SDVOSB fraud case, call our government small business lawyers at 1-866-601-5518 Toll-Free.