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Press Release

Co-owner of Construction Company Sentenced for Defrauding Service-Disabled Veteran-Owned Small Business Program

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

KANSAS CITY, KAN. - The co-owner of a defunct Missouri construction company has been sentenced to 51 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 Thursday.

Michael J. Parker, 41, Blue Springs, Mo., pleaded guilty to one count of conspiracy to commit fraud against the United States, one count of major program fraud and one count of wire fraud. In his plea, he admitted that he and his father, co-defendant, Warren K. Parker, made false claims in order for their company, Silver Star Construction LLC of Blue Springs, Mo., and Stilwell, Kan., 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.

Federal agents determined that in fact Warren Parker never was classified as a service-disabled veteran by the Veterans Administration or the Department of Defense.

Co-defendants include:

Warren K. Parker, who was sentenced to 87 months.

Mary Parker, who was sentenced to 20 months.

Thomas Whitehead, who is awaiting sentencing.       

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.

Updated November 12, 2015

Financial Fraud