Showing posts with label veteran owned business. Show all posts
Showing posts with label veteran owned business. Show all posts

Friday, February 21, 2020

AG Report: Pentagon gave $876.8 million in contracts to ineligible contractors meant for disabled veteran owned businesses!


Pentagon Awarded $876M in Contracts Meant for Disabled Vets to Ineligible Companies: IG
By Richard Sisk
20 Feb 2020
The report also cited the case of "Contractor B," who had received three SDVOSB contracts worth $209.6 million. "However, we determined that evidence did not exist to support that a service-disabled veteran was the majority owner and highest ranking officer or in control of the company," the IG's report said.
This March 27, 2008, file photo, shows the Pentagon in Washington. (AP Photo/Charles Dharapak)
Small businesses owned or run by disabled veterans may have been cheated out of hundreds of millions of dollars in Defense Department contracts by unscrupulous firms who were ineligible for the awards, the Pentagon's Inspector General reported Thursday.

The IG's audit found that the DoD "awarded $876.8 million in contracts to ineligible contractors and did not implement procedures to ensure compliance with the Service-Disabled Veteran-Owned Small Business (SDVOSB) subcontracting requirements after the contracts were awarded."

At least 16 of the 29 contractors reviewed in the report who received business from the DoD on the basis that they met the disabled veteran requirements were found to be ineligible, the IG's office said.

Unless the DoD conducts better oversight, "service-disabled veterans may be in jeopardy of not receiving contract awards intended for them, and the DoD will be at risk of misreporting the amounts for SDVOSB participation," the 29-page report states.
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Wednesday, June 20, 2018

Sarges Grill Closed, Employees Not Paid

Veteran-owned restaurant closes; employees say they haven't been paid
KKTV 11 News
By Danielle Kreutter
Jun 19, 2018

FOUNTAIN, Colo. (KKTV) - Dozens of employees are out hundreds of dollars after the restaurant they worked at suddenly closed without notice. This happened at both locations of Sarges' Grill.
The restaurant is veteran-owned and aimed at serving veterans, active duty military members, first responders and law enforcement at their locations in Fountain and Colorado Springs.

Over the weekend, customers hoping to eat at Sarges' were met with locked doors and signs saying the business had closed.

It was a surprise to regulars. Several employees told 11 News they didn't get much notice either.

"I was supposed to get paid Wednesday and [a co-worker] was supposed to get paid Thursday, but nothing," said Michael Yamoaah, a former cook at the restaurant.

Yamoaah and the former kitchen manager, Nathan Mayfield, told 11 News the sudden closure happening so soon before rent and bills are due has left dozens of employees in a bad spot.

"[There's] 30-40 employees at least. He owes us each three weeks' pay. I know for me it's 120 hours, about $1,500. It doesn't seem like a lot but for people like us, we live check to check. I've got bills to pay right now," Mayfield said.
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Saturday, October 1, 2016

Fraud Veteran Owned Business Head Gets Jail and Fine

Chelmsford man sentenced in veteran-shamming case
Wicked Local Chelmsford
September 27, 2016

A Chelmsford man was sentenced today in U.S. District Court in Boston in connection with recruiting veterans as figurehead owners of a construction company in order to receive specialized government contracts, according to a press release.

“Taking advantage of set-aside programs intended to support the economic welfare and stability of veterans is appalling,” said U.S. Attorney Carmen M. Ortiz. “Through his scheme, Mr. Gorski undercut the efforts of hard-working veterans to compete for valuable government contracts and, as such, defrauded federal agencies dedicated to serving veterans of our armed services.”

David Gorski, 51, of Chelmsford, was sentenced by U.S. District Court Judge F. Dennis Saylor to 30 months in prison, one year of supervised release and ordered to pay a fine of $1 million, the press release said.

In June 2016, Gorski was found guilty by a jury following a 12-day trial of conspiring to defraud the United States by impairing the lawful governmental function of the Department of Veterans Affairs, the General Services Administration, the Army, and the Navy in the implementation and administration of the Service Disabled Veteran Owned Small Business (SDVOSB) Program. He was also convicted of four counts of wire fraud.
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Saturday, June 18, 2016

Non-Veteran Owed Business Guilty of $100 Million Fraud

Executive of sham ‘veteran-owned’ firm found guilty of $100m fraud
Boston Globe
JUNE 17, 2016

Government regulations mandate that a “Service-Disabled Veteran-Owned Small Business” must be majority-owned and managed by veterans who became disabled while serving in the military to receive preferential awards of federal contracts.
A Chelmsford man who won $100 million in federal construction contracts by saying that his construction company was owned by disabled veterans was found guilty of fraud by a federal jury in Boston Wednesday.

Prosecutors said David Gorski recruited two veterans to stand in as the majority owners and top executives of his construction firm so it could win federal contracts that give preference to veteran-owned companies.

In reality, prosecutors said, Gorski controlled Legion Construction as it won numerous Army, Navy and US Department of Veterans Affairs contracts from 2006 to 2010.

Gorski paid himself salaries as high as $356,000, according to court documents, and also paid his wife —who worked full-time for the town of Chelmsford — $400 a week.

Gorski was convicted of four counts of wire fraud and one count of conspiracy to defraud the government. He is scheduled to be sentenced in September, and could face up to 25 years in prison.
read more here