A former owner of MCC Construction Company has pleaded guilty to conspiring to obstruct a government proceeding before the Small Business Administration (“SBA”) (Source: Justice.gov Press Release). In addition to a likely 10-16 month prison sentence, the former owner has agreed to pay restitution of $165,711. The Antitrust Division of the Department of Justice investigated and determined that MCC Construction Company had unlawfully bid for federal contracts intended for small businesses. The DOJ maintains that it will aggressively investigate those who profit by fraudulently competing for contracts meant for small businesses.
The multi-agency investigation revealed criminal conduct by MCC Construction Company conspiring with two other companies that were eligible for the contracts, with the understanding that the work would be passed on to MCC. As a result, MCC won 27 government contracts intended for small and disadvantaged businesses totaling approximately $70 million dollars. A status hearing is scheduled September 20, 2016, and will be presided over by the Honorable Ketanji Brown Jackson of the U.S. District Court for the District of Columbia. As part of his plea deal, Harper waived a federal indictment that would have required a statutory minimum of 5 years in prison. MCC itself has already agreed to pay $1,769,924 in criminal penalties and forfeiture.
There already exists opportunities for large corporations to bid on federal contracts. It’s just that MCC opted to dip into the types of contracts reserved for small and disadvantaged businesses, and many lost opportunities to participate. Bidding for these particular contracts requires certain conditions to be met. MCC tried to skirt around these conditions by using smaller businesses to win the contracts. The scheme failed, thanks to the investigative efforts by the aforementioned agencies.
Here at BATEY LAW OFFICE, PLLC, we counsel large and small businesses on regulatory compliance. Navigating laws in heavily-regulated industries can be tricky for the layperson. We also provide counseling services to businesses here in Kentucky involving all types of disputes with bids and contracts. While not every situation leads to reversals and revisions, a competent business attorney can review the circumstances to determine what can be done. If you find yourself in need of a business attorney, then reach out to us today and let us know how we can serve you.
Personal Liability for Business Owner Who Committed Fraud Involving Government Contracts for Small Businesses