Business Allegedly Lied to Government in Pursuit of Federal Contracts

This suit involves a business that allegedly violated the False Claims Act by misrepresenting their eligibility for a Small Business Administration (SBA) program in order to qualify for millions of dollars in federal government contracts. In order to qualify for set-aside and no-bid government contract work, the defendant certified that its subsidiaries qualify as small businesses. However, it was alleged that the defendant ran itself as one large business, such that its subsidiaries exist only on paper, share employees, and had only “placeholder” managers who work solely to advance the interests of the defendant parent company.

Question(s) For Expert Witness

1. Do you have experience helping subsidiaries owned by applicants qualify for 8(a) status?

2. Please describe your experience working with the SBA and more specifically, the 8(a) small business program.

Expert Witness Response E-109855

I served the US Small Business Administration for 34 years before my retirement. When I served as the Associate Administrator for Minority Small Business and Capital Ownership Development, I was the only person authorized to approve businesses into the 8(a) Program. My work with capital access and government contracting directly affected these corporations, as I was in charge of approving financing for them. I have testified before Congress on these businesses and their impact on the 8(a) Program, specifically the policies and procedures that had been put in place to reduce fraud and abuse in the program. I have continued to research legislation and policies regarding the SBA, ANCs, and the 8(a) Program in my current position as a senior manager of small business at a nonprofit agency. I can speak to the materiality of representation to the SBA and the requirements to certify subsidiaries as small businesses.