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Aug 26 2022    Next issue: Sept 9 2022

Government saw surge of small biz fraud - Pt. 2

      Here is Set-Aside Alert’s exclusive state-by-state list of major Justice Dept. fraud cases for small business loan and contract fraud in the last two years (continued from Aug. 12, 2022 edition):

Georgia:

  • Defrauding DOD: A federal grand jury has indicted US military contractors Envistacom LLC, its president, Alan Carson and a vice president, Valerie Hayes, and Philip Flores of another company, with a conspiracy totaling over $7 million. They face up to 15 years in prison (https://bit.ly/3bV3xOE).

    Indiana:

  • Bankers’ scheme: Small business lending executives at Banc-Serv Partners LLC--Kerri Agee, Kelly Isley, Chad Griffin and Matthew Smith--each received prison sentences for a 13-year conspiracy to defraud SBA loan programs (https://bit.ly/3P5kXXh).

    Iowa:

  • Loan fraud: Former executives of Valley Bank and Vital Financial--Michael Slater, Larry Henson, Andrew Erpelding and Susan McLaughlin--pleaded guilty to making false statements for loans resulting in $4.5 million in losses to US taxpayers. They each face a maximum of 30 years in prison (https://bit.ly/3nGaea2).

    Louisiana:

  • Petro fuel conspiracy: Former Energy Dept. employee Johnny C. Guillory was found guilty of conspiring with Cajan Welding & Rentals Ltd. to defraud the U.S. Strategic Petroleum Reserve. Cajan was awarded more than $15 million in DOE contracts and Guillory received kickbacks. He faces a maximum of five years in prison and a fine of $250,000 (https://bit.ly/3OPJyiX).

    Maryland:

  • USPS vendor fraud: Joseph Liberto was sentenced to 18 months in prison and ordered to pay $1.4 million in restitution and fines after being convicted in a wire fraud conspiracy to defraud the US Postal Service. Liberto was found guilty of submitting fraudulent and inflated invoices (https://bit.ly/3yM20DN).
  • Stealing private information: Former Acting Inspector General for the Homeland Security Dept. Charles K. Edwards pleaded guilty to stealing sensitive databases with personal identifying information from DHS from 2015-2017. The information was for use by his own business, Delta Business Solutions Inc. Sentencing is pending. Former DHS acting IT executive Murali Y. Venkata also pleaded guilty in the scheme (https://bit.ly/3RdNY4O and https://bit.ly/3OHrgR3).

    Massachusetts:

  • Taxpayer-funded travel: Former US Army contracting officer Thomas Bouchard pleaded guilty to conspiracy and theft for arranging false employment and travel paid for by taxpayers. Bouchard, and allegedly co-defendant Chantelle Boyd, took numerous government-funded trips, allegedly including 31 trips to Orlando, FL, with false reporting. He faces 15 years and a fine of $250,000. Boyd received $490,000 for alleged false employment working for Bouchard. She also faces charges (https://bit.ly/3OSJcZ3).

    Michigan

  • Pandemic loan fraud: Nail salon owner Johnny Ho was convicted of wire fraud and money laundering to obtain more than $4.1 million in SBA pandemic loans. He faces up to 60 years in prison (https://bit.ly/3OPYjlX).
(Editor’s Note: Part 3 will be published in the Sept. 9 edition of Set-Aside Alert)

     

Inside this edition:

September set-aside percentage likely to be highest rate of year

DOD M-P gets board support

New per diems start on Oct. 1

Final rule on new paths for past performance credit now in effect

Government saw surge of small biz fraud - Pt. 2

Polaris SB bids due Sept. 9

DOL prevailing wage live seminars

CIO-SP4 awards by Nov

Column: Overcoming Confusion Regarding FAR Cost Principles

Washington Insider:

  • FAR Councils plan 14 Final Rules, 22 NPRMs
  • DOJ must step up to debar bad vendors: Warren
  • LGBTQI contractors

Coronavirus Update



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