A recent SBA 8(a) procurement fraud scheme and corruption case resulted in four retired and one active duty Army National Guard officials pleading guilty for their role in procurement fraud crimes under
the SBA 8(a) Program. The result of procurement fraud schemes and corruption ended in the award of millions of dollars in marketing, retention and recruitment contracts. Indictments, in this case, alleged that Sines and Rappoccio evaded the competitive bidding process by using 8a companies in exchange for bribes.
The National Guard Bureau procured the mentioned contracts under the Small Business Administration’s 8(a) Certification Program. Government employees and contractors must be aware of serious criminal penalties under the Anti-Kickback Statute and other procurement fraud schemes and corruption laws that can have serious criminal consequences and penalties. See full DOJ decision here.
Note: When hiring a federal criminal defense lawyer, make sure that you hire one that understands government contracts and legal issues important to SBA fraud cases.
Increased Procurement Fraud Schemes and SBA 8(a) Fraud Corruption Oversight
According to the Department of Defense INSTRUCTION, NUMBER 7050.05, dated May 12, 2014
All DOD components are required to investigate all significant SBA fraud investigations of government contract fraud or corruption related to procurement activities affecting its organization.
The Instruction also emphasizes that “all possible criminal, civil, contractual, and administrative remedies are identified to cognizant procurement and command officials and Department of Justice (DOJ) officials, as appropriate, and that appropriate remedies are pursued expeditiously.”
- There is no doubt that government contractors are subject to increased scrutiny for procurement fraud crimes including SBA 8(a) fraud and corruption.
- Such allegations and indictments can have a grave impact of contractors and federal employees involved in the procurement process.
There seems to be a special increase of procurement fraud under the 8 a Program. Give the unique statutory power for 8(a) certified companies to get federal government contracts outside of the competitive process; it can be very tempting for large businesses and non 8(a) certified companies to become involved in procurement fraud and corruption schemes.
Find out more about Criminal Defense for Defrauding SBA Disadvantaged Small Business Program.
For questions of representation in a government contracts investigation and procurement fraud schemes, call our white collar crime and procurement fraud criminal defense attorneys, for a free initial consultation. 1-866-601-5518.