Public Affairs Office | Florida contractors and owner to pay more than $7.7 million to resolve False Claims Act allegations over winning small business contracts

[ad_1]

HX5 LLC and its owner and CEO, Margarita Howard, located in Fort Walton Beach, Florida, and joint venture affiliate HX5 Sierra LLC, located in Cleveland, Ohio, agreed to pay U.S. 7,759 $693.92 to resolve allegations that they violated the False Claims Act by knowingly providing false information to the Small Business Administration regarding the HX5 and HX5 Sierra’s eligibility for reserved federal contracts for small businesses owned and controlled by socially and economically disadvantaged people.

Small business set-aside contracts help small businesses, including socially disadvantaged businesses, compete in the U.S. economy, said Senior Assistant Deputy Attorney General Brian M. Boynton, Chief of the Civil Division of the Department of Justice. When companies misrepresent their eligibility for such contracts, they prevent others from benefiting from the business opportunities provided by Congress.

The SBA 8(a) Business Development Program aims to assist small businesses owned and controlled by socially and economically disadvantaged individuals. Once certified, 8(a) program participants are eligible to receive federal contract preferences. The settlement announced today resolves allegations that HX5, HX5 Sierra and Howard fraudulently obtained six 8(a) contracts during the period from January 1, 2015 to December 31, 2021. Specifically, the government alleged that HX5 and Howard had failed to report distributions and payments to members of the Howards family and allegedly provided false information to the SBA regarding Howards’ assets. The government further alleged that if HX5 and Howard provided accurate information, it would have resulted in HX5’s termination from the SBA 8(a) program, which, in turn, would also have made HX5 Sierra ineligible for set-aside contracts 8 ( To). . Due to the alleged misrepresentations, HX5 improperly maintained its status as an 8(a) program participant and HX5 and HX5 Sierra were awarded 8(a) reserved contracts by the National Aeronautics and Space Administration (NASA), the US Army, and the US Air Force for which companies were not eligible.

We are very pleased with today’s agreement, said U.S. Attorney Jason R. Coody for the Northern District of Florida. This result demonstrates a coordinated effort among our partner agencies to ensure that the disregard for the integrity of contracting with small businesses will not go unchecked.

Individuals who provided fraudulent information to access SBA funds intended to support eligible small businesses will be brought to justice, said Special Agent in Charge Amaleka McCall-Brathwaite of the SBA Office of Inspectors General for the Region. ballast. Today’s settlement sends a strong message that those responsible will be held accountable. I would like to thank the United States Department of Justice and our law enforcement partners for their support and dedication to the pursuit of justice in this case.

The civil settlement includes the resolution of claims filed under the qui tam or whistleblower provisions of the False Claims Act by Vantage Systems Inc. Under these provisions, a private party may bring an action on behalf of the United States and receive part of any recovery. . The qui tam case is subtitled US ex rel. Vantage Systems, Inc. c. HX5 LLC, et al., et al., No. 20-cv-3649 (ND Fla.). As part of today’s resolution, Vantage Systems will receive $1,357,964.00.

The resolution achieved in this case is the result of a coordinated effort between the Civil Division of the Department of Justice, the Commercial Litigation Branch, the Fraud Section, and the U.S. Attorney’s Office for the Northern District of Florida, with the NASA Office of General Counsel, NASA Office of Inspector General, Office of the Air Force General Counsel, Office of the Air Force Judge Advocate General , Air Force Office of Special Investigations, Office of the Army Judge Advocate General, Army Criminal Investigation Division, Defense Contracts Audit Agency, Defense Contract Management Agency and the Office of the Inspector General of Small Business Administration.

The case was handled by Trial Attorney Laura Hill of the Justice Department’s Civil Division, former Trial Attorney Andrew Jaco of the Justice Department’s Civil Division (now with the Department’s Criminal Division of Justice) and Assistant U.S. Attorney Mary Ann Couch for the Northern District of Florida. .

The claims resolved by the settlement are allegations only and no liability has been determined.

[ad_2]