ALEXANDRIA, Virginia – On Tuesday, a federal jury convicted a former government contractor who had completed work at NASA’s Kennedy Space Center for fraud related to the Small Business Administration’s Women-Owned Small Business Program.
âThe evidence at trial showed that the defendant compromised the integrity of the procurement process by falsely representing the ownership and control of his company in order to obtain lucrative government contracts,â said Raj Parekh, US Attorney by interim for the Eastern District of Virginia. “The unwavering dedication of the testing team and our partner agencies in this case is another example of EDVA’s continued commitment to a robust white collar enforcement program.”
According to court records and evidence presented at trial, Kevin N. Smith, 61, of Rockledge, Fla., Served as general manager of SDB Engineers & Constructors, a Florida-based subcontractor who, between 2014 and 2015, served completed work on two major NASA Main Contracts. Smith participated in a fraudulent scheme to present SDB as a small business owned by a woman when in reality it was not considered a small business owned by a woman because no woman controlled its day to day business operations. As part of the program, Smith falsely certified SDB as a small, woman-owned business with the federal government and major NASA contractors. The scheme resulted in SDB receiving more than $ 6 million in fraudulently obtained contract payments, with a total profit of around $ 1 million during Smith’s tenure at the company.
Smith was convicted of one count of conspiracy to commit wire fraud and five counts of wire fraud. Smith faces a maximum sentence of 20 years in prison when convicted. The actual sentences for federal crimes are generally less than the maximum sentences. A federal district court judge will determine any sentence after taking into account US sentencing guidelines and other statutory factors.
Raj Parekh, Acting United States Attorney for the Eastern District of Virginia; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; and Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), made the announcement after US District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorney Daniel Young and Special Assistant U.S. Attorney Ryan Faulconer are continuing the case. Former US Deputy Prosecutor Samantha Bateman had previously pursued the case.
A copy of this press release can be found on the website of the United States Attorney’s Office for the Eastern District of Virginia. Court documents and related information can be found on the District Court for the Eastern District of Virginia website or on PACER by searching for Case # 1: 20-cr-74.