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Fraud case involves $31M intended for disadvantaged small businesses

by administrator · Comments 0

“Executives at two Arlington companies have pleaded guilty after being accused of fraudulently obtaining more than $31 million in federal contract payments meant for disadvantaged small businesses, the Justice Department said Monday.

Justice alleged that Hedman and an unnamed African American woman established an Arlington-based security service consulting company around 2001. The woman was named president and chief executive, allowing the contractor to win work set aside for certain minority-owned small businesses, Justice alleged.

After the woman left in 2003, the company was no longer eligible for the set-aside work, and Hedman created a shell company to win small-business work, even though it was not qualified, according to Justice.”

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Filed Under: News Tagged With: Disadvantaged Business Enterprise, Fraud, small business

Filed Under: NewsTagged: ,Disadvantaged Business Enterprise, Fraud, small business
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