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Defendant Admits to Faking Government Contract Certifications
Orlando, FL – In a shocking turn of events, a Florida-based company and its owner have agreed to pay a hefty sum to resolve allegations that they made false statements to the Small Business Administration (SBA) to obtain certification as a Historically Underutilized Business Zone (HUBZone) company.
According to the Justice Department, Air Ideal Inc. and its majority owner, Kim Amkraut, have agreed to pay the United States $250,000 to resolve allegations that they made false statements to the SBA to obtain certification as a Historically Underutilized Business Zone (HUBZone) company.
The allegations stem from the defendants’ original application to the HUBZone program in 2010, which claimed that Air Ideal’s principal office was located in a designated HUBZone. However, the complaint alleges that this location was a ‘virtual office’ where no Air Ideal employees worked, and that Air Ideal was actually located in a non-HUBZone location.
The complaint further alleges that the defendants submitted fabricated documents, including a lease agreement and other fabricated documents, to support their claim. The defendants allegedly used their fraudulently-procured HUBZone certification to obtain contracts from the U.S. Coast Guard, U.S. Army, U.S. Army Corps of Engineers, and the U.S. Department of the Interior.
‘When companies falsely claim eligibility for government contracts set-aside for HUBZone businesses, they not only misuse taxpayer funds, but they also deprive HUBZone communities of the benefits of the program,’ said Acting Assistant Attorney General Benjamin C. Mizer.
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by Patricia Hopson, who is employed in the construction industry. Hopson will receive $42,500 as part of the resolution.
Under the settlement, defendants must also pay five percent of Air Ideal’s gross revenues over the next five years.
The case serves as a reminder of the importance of transparency and honesty in government contracting.
Defendant: Air Ideal Inc. and Kim Amkraut
Criminal Charges: False Claims Act Violations
City and State: Orlando, Florida
Exact Date: N/A (settlement date)
Sentence or Outcome: $250,000 fine and 5% of Air Ideal’s gross revenues over the next five years
Dollar Amounts: $250,000 and $42,500 (to Patricia Hopson)
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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