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Press Release

Jury Convicts Former NASA Subcontractor of Fraud

For Immediate Release
U.S. Attorney's Office, Eastern District of Virginia

ALEXANDRIA, Va. – On Tuesday, a federal jury convicted a former government subcontractor who completed work at NASA’s Kennedy Space Center of fraud charges relating to the Small Business Administration’s women-owned small business program.

“The evidence at trial demonstrated that the defendant compromised the integrity of the contracting process by falsely representing the ownership and control of his company in order to obtain lucrative government contracts,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The steadfast dedication of the trial team and our partner agencies in this case serves as 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, Florida, served as the general manager of SDB Engineers & Constructors, a Florida-based subcontractor that, between 2014 and 2015, completed work on two large NASA prime contracts. Smith participated in a fraudulent scheme to represent SDB as a woman-owned small business when, in reality, it did not qualify as a woman-owned small business because no woman controlled its daily business operations. In furtherance of the scheme, Smith falsely certified SDB as a woman-owned small business to the federal government and to NASA prime contractors. The scheme resulted in SDB receiving more than $6 million in fraudulently obtained contract payments with a total profit of approximately $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 penalty of 20 years in prison when sentenced. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. 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 U.S. District Judge Anthony J. Trenga accepted the verdict.

Assistant U.S. Attorney Daniel Young and Special Assistant U.S. Attorney Ryan Faulconer are prosecuting the case. Former Assistant U.S. Attorney Samantha Bateman previously prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-74.

Updated August 4, 2021

Financial Fraud