According to the Department of Justice (DoJ), an indictment has been handed down to two men from Missouri that created a Service-Disabled Veteran-Owned Small Businesses (SDVOSB) “rent a vet” scheme to obtain 20 contracts totaling over $13.8 million.
In the indictment, Jeffery Wilson (not a service-disabled veteran) conspired with Paul Salavitch, a service-disabled veteran, to obtain SDVOSB set-aside contracts with the VA and Army. It turns out, Salavitch served as the President of Patriot Company, Inc. but did not manage the day-to-day operations nor did he work there full-time. It was discovered later that Salavitch worked full-time with the DoD in Leavenworth, Kansas. Suggested in the indictment, Mr. Wilson actually controlled the company, not Mr. Salavitch.
According to the indictment, the Patriot Company, Inc was awarded a total of 20 SDVOSB and VOSB set-aside contracts with the VA and Army, totaling $13,819,522. Charged with conspiracy and four counts of contract fraud, Mr. Wilson, Mr. Salavitch and Patriot are required to forfeit property and proceeds gained during the scheme. In addition, Mr. Wilson is also charged with wire fraud and money laundering. To date, law officials have seized $2 million from financial accounts.
As with any indictment, the defendants are entitled to a presumption of innocence. But in this Rent-a-Vet case, it is obvious the intension was to deceive. If you have questions about SDVOSB or VOSB contracts, or the Rent-a-Vet scheme, contact Duncan and Company for more information.
KDuncan & Company is dedicated to providing knowledge and support for small government contractors about concerns regarding government contracting. For questions on areas such as as cost proposals, accounting systems, DCAA compliance, and incurred cost audits, reach out to KDuncan & Company.