Former Vice President of SDVOSB Disgorges Profits And Pays $35,000 To Resolve FCA Allegations

PENSACOLA, FLORIDA – Robert Bechtold, former Vice President of Certified Manufacturing Enterprises, LLC (“CME”), a Service-Disabled Veteran-Owned Small Business and Native American Owned Small Business previously operating in Holt, Florida, entered into a settlement agreement to resolve allegations that he falsely represented CME’s status to obtain set-aside government contracts.  The settlement was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.

“This resolution demonstrates our commitment to ensure that socially disadvantaged small businesses can fairly compete in the award of government contracts,” said U.S. Attorney Coody.

“Individuals who fraudulently misrepresent eligibility for set-aside contracts will be held accountable.”

The United States contended that Mr. Bechtold was responsible for violations under the False Claims Act, 31 U.S.C. §§ 3729-3733, related to his representations to the federal government regarding CME’s status as a Service-Disabled Veteran-Owned Small Business (“SDVOSB”).  In particular, the United States alleged that Mr. Bechtold falsely represented CME’s status as a Service-Disabled Veteran-Owned Small Business to obtain Contract No. SPE4A6-18-P-M255 with the Defense Logistics Agency, which was intended for a true SDVOSB.  Mr. Bechtold agreed to pay $35,000 to resolve the allegations, of which $11,285 is restitution.

“We extend our gratitude to the Northern District of Florida’s United States Attorney’s Office and our joint partners for their commitment to integrity in all contractual dealings. This settlement sends a clear message that any attempts to undermine fair competition will not be tolerated, ensuring our nation's defense is supported by principled partners," said Derrell D. Freeman, Special Agent-in-Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Detachment 5, Dobbins Air Reserve Base, GA.

Assistant United States Attorneys Mary Ann Couch and Marie Moyle represented the United States in this matter, with assistance from the Defense Logistics Agency, Air Force Office of Special Investigations, and Defense Criminal Investigative Service. 

The claims resolved by the settlement are allegations only and there has been no determination of liability.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.