Two people in Pennsylvania have admitted to fraudulently obtaining more than $80 million in government contracts reserved for small and disadvantaged businesses.
Thomas E. Lauer, 64, and Rebecca J. Davis, 77, each admitted to one count of conspiracy to commit major fraud against the United States in federal court in Harrisburg, says the U.S. Attorney’s Office for the Middle District of Pennsylvania.
The pair worked with others from 2007 to 2014 to win five contracts for Davis’s firm, Elstner Construction Company, at Letterkenny Army Depot.
Those deals were intended for participants in the Small Business Administration’s 8(a) program, but Davis had already exhausted her one-time eligibility under a prior company name.
Lauer separately helped secure a $5.3 million contract for Bon Secour Management at a Virginia VA facility by falsely claiming service-disabled veteran-owned status.
The defendants also admitted to breaching contract terms that required the prime contractor to perform key work.
Davis agreed to pay $6 million in restitution while Lauer agreed to pay roughly $6.45 million.
Each faces a maximum of five years in prison.
The case was investigated by multiple federal inspector general offices.
Follow us on X @InvCryptoDaily
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Images May Be Sourced From Pixabay, Creative Commons & Midjourney
This post Pennsylvania Pair Admit To Orchestrating $80,000,000 Scheme, Fraudulently Obtaining Contracts Reserved for Small and Disadvantaged Businesses may be modified as updates unfold.
Please note, this site provides content for entertainment purposes only and does not offer financial advice. Read more here