Fort Belvoir, Va., –
A coordinated effort among multiple government agencies including DCAA, the Justice Department, Small Business Administration, Veterans Administration, General Services Administration, and the military investigative services resulted in a settlement agreement for $2.8M. DCAA Auditor Jon Barrett and Supervisory Auditor Vernon Moore III supported the investigation. Mr. Barrett assisted the investigation by determining specific records to subpoena, participating in interviews with agents and attorneys, analyzing bank records, and preparing damage models.
On February 20, 2020, The Ross Group and its corporate affiliates, agreed to pay over $2.8 million to settle allegations they violated the False Claims Act by improperly obtaining federal set-aside contracts reserved for disadvantaged small businesses awarded by the DoD and other Government agencies. The United States alleged that Ross Group created two companies, PentaCon LLC and C3 LLC, to obtain small business set-aside contracts for which Ross Group itself was ineligible. The United States further alleged that Ross Group maintained operational control over the day-to-day and long-term management decisions of the two purported small businesses, including controlling their financial affairs and business operations, and that, as a result, neither PentaCon nor C3 satisfied the size and eligibility requirements to participate in the set-aside programs. Ross Group, PentaCon, and C3 allegedly concealed their affiliation from the United States and knowingly misrepresented the eligibility of PentaCon and C3 for the set-aside contracts.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
To read the full press release click here.