Former Construction Contractor Sentenced for Government Contract Scam
A former construction contractor has been sentenced to 2 years of probation and ordered to pay $345,271.34 in restitution to the United States after pleading guilty to conspiracy to commit wire fraud and conspiracy to commit an offense against the United States by offering and giving gratuities to a former Fort Drum contracting officer.
Sean O’Sullivan, 61, of Sackets Harbor, New York, was sentenced in federal court in Utica on [Date] for his role in a scheme to defraud the government by bidding on and obtaining contracts set aside for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) to which he knew he was not entitled.
O’Sullivan and his business partner, David Rose, of Newport News, Virginia, incorporated a construction company named Sierra Delta Contracting, LLC, which O’Sullivan controlled and managed. Despite Rose being a service-disabled military veteran, O’Sullivan is not, but he certified to federal agencies that Sierra Delta was an SDVOSB by representing that Rose personally managed and controlled the company’s day-to-day business operations.
In reality, O’Sullivan controlled and managed Sierra Delta, while Rose continued to live and work at a separate full-time job in Virginia. Between May 2014 and July 2017, Sierra Delta bid on and received multiple construction contracts from the Army at Fort Drum, New York, and one construction contract from the U.S. Department of Transportation. All of the contracts were 100% set aside for SDVOSBs.
O’Sullivan has admitted that he personally received $345,271.34 in profits from the scheme, which involved hiring his own construction company, SOS Inc., as the primary subcontractor on the fraudulently obtained contracts.
The announcement was made by United States Attorney Carla B. Freedman and other federal officials.
O’Sullivan’s sentence includes 2 years of probation and $345,271.34 in restitution to the United States.
Sean O’Sullivan, age 61, of Sackets Harbor, New York, was sentenced yesterday in federal court in Utica to 2 years of Probation and ordered to pay $345,271.34 in restitution to the United States after previously pleading guilty to conspiracy to commit wire fraud in relation to government contracts and conspiracy to commit an offense against the United States by offering and giving gratuities to a former Fort Drum contracting officer.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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