News and Press Releases

Construction Company Owner Sentenced
For Defrauding Service Disabled Set Aside Program

FOR IMMEDIATE RELEASE

 

Nov. 5, 2012

KANSAS CITY, KAN. – The owner of a Missouri construction company has been sentenced to 87 months in federal prison for defrauding a federal program that set aside contracts for businesses owned by service-disabled veterans, U.S. Attorney Barry Grissom said today.

Warren K. Parker, 70, Blue Springs, Mo., pleaded guilty to one count of conspiracy to commit fraud against the United States, one count of major program fraud, one count of wire fraud, one count of money laundering and one count of making a false statement.

In his plea, Parker admitted he falsely claimed to be a service-disabled veteran and a war hero in order to obtain more than $6.7 million in contracts from the Veterans Administration and more than $748,000 in contracts from the Department of Defense. The contracts were awarded under the Service-Disabled Veteran-Owned Small Business Program.

After an extensive investigation, federal agents determined that Parker and his company, Silver Star Construction LLC of Blue Springs, Mo., and Stilwell, Kan., fraudulently claimed Service-Disabled Veteran-Owned Small Business status in order to obtain federal government contracts. In fact, Parker never was classified as a service-disabled veteran by the Veterans Administration or the Department of Defense.

In March 2011, Parker submitted a fraudulent resume in which he manufactured a history as a war hero, including a record of service in Vietnam, claiming he was awarded three Silver Stars, three Purple Heart Medals and other citations. State and federal records show that Parker served in the Missouri National Guard from 1963 to 1968, he spent six months on active duty. In 1968 he was honorably discharged as a Senior Engineer Equipment Mechanic with the rank of Specialist E-5. His only decoration was an expert rifle badge. He never left the state of Missouri while on active duty or while assigned to the Missouri National Guard.

Parker pleaded guilty to the forfeiture counts of the indictment which will result in a $6.8 million judgment being entered against him in favor of the United States. He also agreed the immediate forfeiture of personal property, including a notebook Parker labeled “Book of Death” which contained list of fictitious Vietnam war “sniper kills.”

Co-defendants who are awaiting trial include:
Mary Parker, 67, Blue Springs, Mo.
Michael J. Parker, 37, Blue Springs, Mo.
Thomas Whitehead, 59, Leawood, Kan.
Silver Star Construction, LLC

Grissom commended the Small Business Administration’s Office of Inspector General; the Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division and the General Services Administration’s Office of Inspector General; and Assistant U.S. Attorney Tris Hunt for their work on the case.

 

 

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