Wednesday, April 24, 2019

Illegally Obtained Contracts Results in Prison Time for Company Executive

This guy didn't just "rent-a-vet" to illegally win construction contracts set aside for disabled veterans. He also "rented" a minority and "rented" a woman to obtain contracts set aside for minority-owned and women-owned business respectively. Over a ten year period, Tomas Brock (and his company, Boykin Contracting), won more than $160 million in Government contracts to which he was not entitled. Programs set aside for minorities, women, and service veterans are intended to provide small businesses with an opportunity for growth and experience.

How was this guy caught? The discovery was a little different than what we're used to seeing. According to the Justice Department's press release, Mr. Brock's scheme fell apart when he fraudulently acquired loans to cover the company's losses and fell behind on the repayments, prompting a civil lawsuit and then, a criminal investigation. Why did the company lose money and why did the company need to borrow money? The same press release states that Mr. Brock siphoned off money from the company to support a "lavish lifestyle".

The investigation took five years and involved many investigative agencies. Mr. Brock was sentenced to five years in prison.

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