Related Federal Cases
Feds Nail MD Contractors for Faking Small-Biz Status
Capitol Heights, MD – Platinum One Contracting, its president Anthony Wright, and Capitol Contractors, and its president Vernon J. Smith III, have agreed to pay the United States $200,000 to settle claims that they used false statements to obtain contracts from the government.
The contracts had been set aside for companies that qualified for the Small Business Administration’s (SBA) 8(a) business development program, as well as for businesses that qualified for the Historically Underutilized Business Zone (HUBZone) program.
“Those who seek to obtain government contracts intended for businesses run by socially or economically disadvantaged individuals or for companies located in areas that need jobs must play by the rules,” said Tony West, Assistant Attorney General for the Civil Division of the government. “We will take action against those who use false statements to cheat both the government and the companies and communities that should have received the valuable benefits.”
The United States alleged that Platinum One and Anthony Wright falsely represented to the SBA, the Navy and the Army that Platinum was controlled by a socially and economically disadvantaged individual. The government’s investigation found that Platinum One was actually controlled by Vernon J. Smith III, who is not socially or economically disadvantaged.
The government also alleged that Platinum One and Anthony Wright falsely represented to the SBA and other government agencies that Platinum maintained its principal office in a designated HUBZone location. In fact, Platinum actually operated out of offices owned by Capitol that were not located in a HUBZone.
The cooperative effort of SBA’s Offices of the General Counsel and the Inspector General and the government will continue to aggressively pursue and seek criminal or civil fraud prosecution of false statements made to obtain preferential contracting and other government benefits. SBA General Counsel Sara Lipscomb stated, “This case represents the cooperative effort to uncover and remedy fraud in our procurement programs.”
Platinum One and Capitol Contractors are not alone in their scheme. The government has pursued several cases for false claims made to obtain HUBZone, 8(a), and other set-aside contracts. Assistant Attorney General West thanked the government’s Civil Division, the SBA Office of General Counsel, and the SBA Office of Inspector General for their cooperation in uncovering and prosecuting this case.
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime