CLASSIC SITE SOLUTIONS, INC. and its owner, CHERYL SADY, have been caught in a massive scheme to defraud the federal government out of millions of dollars in contracts. The Massachusetts-based construction management company and its owner have agreed to pay $1.3 million to settle False Claims Act allegations in Connecticut.
According to the U.S. Attorney’s Office, CLASSIC SITE SOLUTIONS, INC. and Sady made false statements to the Small Business Administration (SBA) to obtain certification as a Historically Underutilized Business Zone (HUBZone) company. The HUBZone program is designed to support small businesses that locate in geographic areas that have historically been unable to attract businesses and jobs.
The government alleges that CSS and Sady falsely claimed to the SBA that CSS’s principal office was located in a designated HUBZone when, in fact, it was not. Using the fraudulently obtained HUBZone certification from the SBA, CSS bid on and was awarded government contracts worth millions of dollars that had been set aside for qualified HUBZone companies, as well as contracts for which a price preference was available to HUBZone companies.
After CSS’s fraudulently procured HUBZone certification was discovered, CSS and Sady made further false statements to federal agents about CSS’s HUBZone eligibility and the location of its principal office.
To resolve the government’s allegations, CSS and Sady have agreed to pay $1.3 million for conduct occurring between 2009 and 2015.
“Companies that make false representations to take advantage of federal government contract programs for which they don’t qualify will be held accountable,” said U.S. Attorney John H. Durham. “We thank the SBA’s Office of Inspector General and Office of General Counsel, and the GSA Office of Inspector General, for their diligent work on this case and their efforts to protect both the integrity of the HUBZone program and taxpayer money.”
“The outcome in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and other federal law enforcement partners to detect procurement fraud and prosecute those individuals and companies that engage in such activities,” said SBA’s General Counsel Christopher M. Pilkerton.
The investigation was conducted by the U.S. Small Business Administration and the U.S. General Services Administration Office of Inspector General. This matter was handled by Assistant U.S. Attorney Sarah Gruber, with the assistance of Auditor Susan N. Spiegel.
The False Claims Act allows the government to recover up to three times its actual damages, plus penalties of $11,181 to $22,363 for each false claim. CLASSIC SITE SOLUTIONS, INC. and CHERYL SADY will be paying the price for their deceitful actions, and the public can rest assured that those who cheat the system will be held accountable.
Related Federal Cases
- Letitia James Urges Senate to Reject SAVE America Act, New York NY,… · New Mexico
- Elvin Gonzalez, Narcotics and Firearm Charges, Connecticut 2024 · Washington
- Jean Carlos Mercado, Cocaine Smuggling via Mail, Connecticut 2024 · Puerto Rico
- Donald Salzberg, $3M Healthcare Scam, Connecticut 2024 · Pennsylvania
- Kenneth Denning, Prostitution Tax Scheme, Connecticut 2024 · Pennsylvania
Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News