A grand jury in Kansas has indicted a service disabled veteran for participating in a pass-through scheme. The indictment, United States v. Joseph David Dail, Jr., Case No. 17-20068-CM/TJJ (November 29, 2017), claims that the service disabled veteran used his status to create a sham SDVOSB company called United Medical Design Builders. The indictment alleges that this company falsely received a $40M MATOC to construct health care facilities at several Air Force bases. The company received task orders under this MATOC totaling over $30M. Allegations of fraud in the indictment include:
- The service disabled veteran “was hardly ever in the office during the four years of the witness’ employment at United Medical Design Builders.”
- All business decisions had to be approved by a non-veteran who rarely met with the service disabled veteran.
- A non-veteran “ran the day-to-day operations for United Medical Design Builders.”
- The service disabled veteran sign a blank sheet of paper that was scanned and used for official letters and correspondence, even with the USACE, because he was never in the office and his signature was always needed.
- The non-veteran created invoices and/or change orders to bleed profits from the company.
- The non-veteran rarely met with the service disabled veteran and made all of the business decisions for United Medical Design Builders.
- The service disabled veteran “was the figurehead and never showed up for work.”
This case emphasizes the need for the service disabled veteran to remain in complete control of his company and finances. Otherwise, you can face serious consequences, both civil and criminal.
